As per the latest announcement from the US Trade Representative Jamieson Greer, the tariff cuts cover an array of products ranging from US corn to cosmetics and from Chinese household appliances to toys.
“Under the US-China Board of Trade, both countries have each recommended USD 30 billion of trade in non-sensitive goods for more favorable tariff treatment,” Greer said in a media briefing on Sunday.
“For the United States, that was unlocking improved market access for about 30% of US exports to China,” he said further.
The reciprocal tariff reduction, along with the extension of a trade truce, was among the key takeaways from the second summit this year between Xi and Trump, with the Chinese president paying his reciprocal visit to Washington last week.
One of two lists from the White House showed that China planned to trim duties on various US agricultural goods, including corn, wheat, sorghum, meat, dairy, vegetable oils, and meals.
The list, however, did not include soybeans.
“Beijing will also look to reduce levies on US fish and seafood, logs and wood products, cosmetics, and medical devices,” the Trump administration noted further.
In another list were Washington’s reciprocal tariff cuts for small Chinese appliances such as coffee makers and toasters, tableware, blankets, and bed linens.
The lists also included toys, fireworks, artificial flowers, Christmas tree lamps, and other holiday decorations, along with children’s car seats.
China’s commerce ministry, through a press briefing on Monday, said that a two-month extension of a trade truce with the United States through to January 10 would provide room for both sides to evaluate their ongoing arrangement to resolve economic and trade issues while considering how to advance on those fronts.
“The extension also provides a relatively stable and predictable policy environment for cooperation among companies and continued active discussions,” the Xi administration remarked.
“Both sides will hold regular talks on potential investment opportunities and barriers, enhancing policy transparency and predictability, and responding to enterprises’ concerns,” Beijing said.
China’s choice of products for tariff cuts was designed to help Beijing meet what the Trump administration says is a USD 17 billion commitment to buy agricultural goods.
Beijing has already resumed large-scale purchases of US soybeans under a deal struck last year to buy 25 million metric tons annually.
“Both countries will set up an agriculture working group under a trade council, which will hold its first meeting before the year ends to discuss two-way market access and regulation,” the p said.
As per the White House press release, the presidential summit also yielded an agreement for China to import 10 million metric tons of coal annually from the United States in 2027 and 2028.
That amount roughly equals 2% of China’s coal imports each year.
“Importing US coal is not only a beneficial supplement to China’s domestic coal market but also brings stable economic income and employment to the US coal industry,” the Chinese ministry said.
On the banking front, China will also examine and approve foreign financial services institutions, including those with US capital, to conduct business and open branches in the world’s second-largest economy.
“There will also be continued communication on increasing flights between China and the United States,” the commerce ministry concluded.