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China and the United States have agreed to reduce tariffs on a combined $60 billion worth of goods traded between the two countries, covering products ranging from US corn and cosmetics to Chinese household appliances and toys.
US Trade Representative Jamieson Greer said in a statement Sunday that the US-China Trade Council had recommended placing $30 billion worth of non-sensitive products from each country under more favorable tariff arrangements. The move could improve market access in China for nearly 30 percent of US exports, he said.
The agreement emerged as a key outcome of US President Donald Trump’s second summit of the year with Chinese President Xi Jinping in Washington last week. The two leaders also agreed to extend their trade truce and reduce reciprocal tariffs.
According to a list released by the White House, China plans to lower tariffs on a range of US agricultural products, including corn, wheat, sorghum, meat, dairy products, vegetable oils and oilseed by-products. Soybeans, however, are not included on the list.
Beijing also plans to reduce tariffs on US seafood, timber and wood products, cosmetics and medical equipment.
In return, Washington will cut tariffs on a range of Chinese imports, including small household appliances such as coffee machines, toasters, tableware, blankets and bed sheets. Toys, fireworks, artificial flowers, Christmas tree lights, other festive decorations and child car seats are also included.
China’s Ministry of Commerce said Monday that the two countries had extended their trade truce by another two months to Jan. 10. The extension is expected to provide additional time to review existing arrangements and discuss further measures to resolve trade and economic disputes.
The ministry said the extension would help create a relatively stable and predictable policy environment for business cooperation between the two countries. Beijing and Washington will also continue consultations on potential investment opportunities and barriers.
Despite the summit, investor sentiment in China remained cautious. Major Chinese stock indexes fell sharply Monday, with technology shares coming under particular pressure amid US moves to impose new restrictions on Chinese technology companies. The CSI 300 blue-chip index fell more than 2 percent at one point, touching its lowest level in a year.
The White House said the new tariff framework could facilitate China’s commitment to purchase $17 billion worth of US agricultural products. Under an agreement reached last year, China has already resumed annual purchases of 25 million metric tons of US soybeans.
The two countries will also establish an agricultural working group under the trade council, with its first meeting expected before the end of the year. The group will discuss market access and regulatory issues affecting agricultural products in both countries.
China has additionally agreed to import 10 million metric tons of US coal annually in 2027 and 2028, according to the White House. The volume is equivalent to about 2 percent of China’s annual coal imports. Liquefied natural gas (LNG) and crude oil were not included in the arrangement.
China’s Commerce Ministry said coal imports from the US would help ensure adequate supplies in its domestic coal market while supporting revenue and employment in the US coal industry.
The two sides also agreed to establish a communication mechanism on artificial intelligence (AI) to facilitate direct contact in the event of AI-related incidents or risks. Another meeting on the issue is expected by the end of November.
Beijing will also review whether to allow more foreign financial institutions, including US firms, to expand operations and open branches in China. The two countries further agreed to continue discussions on expanding direct air services between China and the United States.