WASHINGTON: The United States and China detail a plan to cut tariffs on about US$30bil of imports from each country, as the superpower rivals take steps to steady ties following a summit between leaders Donald Trump and Xi Jinping.
The list for goods entering the United States contains 77 entries, including fireworks, household products, sporting equipment and toys, according to documents published by both governments.
They also listed 1,619 goods set to potentially enter China, such as meat, seafood, dairy products, grains, coal, timber and medical equipment.
The expected tariff relief for US$60bil in bilateral trade was one of the most tangible outcomes of Xi’s state visit to Washington last week, even though the amount is a fraction of the US$415bil in total goods exchanged between the world’s largest economies last year.
The two sides extended their trade truce until January as they pursue a broader agreement ahead of two more expected meetings between Trump and Xi this year.
With major disputes over export controls and Taiwan unresolved, non-sensitive trade has emerged as one area where agreements remain possible.
Shares of some Chinese appliance makers rose after details of the tariff cuts emerged, with Joyoung Co jumping by the 10% limit in Shenzhen and Bear Electric Appliance up as much as 9.5%.
China said the tariff reductions would take place simultaneously after fulfilling procedures required in domestic law.
“This arrangement will help to further stabilise China-US economic and trade relations and create favourable conditions for China’s exports of relevant products to the United States,” the Chinese Commerce Ministry said.
About 90% of the products covered by the reciprocal arrangement would have their tariffs reduced to most-favoured-nation rates, according to a statement.
US Trade Representative Jamieson Greer described the selected products as non-sensitive goods that could qualify for more favourable tariff treatment.
He said the recommendations would improve access for US agricultural products and medical devices, while lowering barriers on Chinese household goods and toys.
“President Trump is unlocking improved market access for about 30% of US exports to China, while benefitting consumers with imports from China of household goods, toys, and other products that the United States generally does not import from other countries,” Greer said.
Beijing said tariffs on coal imported from the United States would be included in the framework, a step it said would support Chinese purchases in 2027 and 2028.
The White House previously said China agreed to import at least 10 million tonnes of coal from the United States next year and again in 2028.
Key grains including wheat, corn and sorghum are among the agricultural exports destined for a tariff cut.
That could help China make progress towards a goal to buy at least US$17bil in US agricultural products annually through 2028, in addition to a commitment to buy 25 million tonnes of soybeans per year.
Progress towards the US$17bil goal has been slow since it was announced by the Trump administration after the last leaders’ summit in May, with traders looking to potential tariff cuts from the meeting in Washington to spark a wave of new buying.
Agricultural purchases are often seen as the low hanging fruit of any trade deal between the United States and China, less complicated than more sensitive issues such as chip technology or artificial intelligence.
A new Agricultural Working Group will be established between the two countries following the summit, according to China’s Commerce Ministry, with an inaugural meeting set to take place by the end of 2026. — Bloomberg
