China, US agree to cut tariffs on $60bn of goods

China and the United States have agreed to reduce tariffs on goods worth about $60 billion traded between the two countries, covering a wide range of agricultural, consumer and household products.

The agreement follows a recent meeting between Chinese President Xi Jinping and US President Donald Trump in Washington. The two sides also agreed to extend their existing trade truce, giving both governments additional time to work on economic and trade issues.

Under the new arrangement, each country has identified around $30 billion worth of non-sensitive goods that could receive more favourable tariff treatment.

China plans to lower duties on several US agricultural products, including corn, wheat, sorghum, meat, dairy products, vegetable oils and related products. The proposed reductions would also cover seafood, timber, cosmetics and medical equipment. Soybeans were not included in the list.

The United States, meanwhile, plans to reduce tariffs on a range of Chinese consumer products. These include small household appliances, tableware, blankets, bed linen, toys, artificial flowers, Christmas decorations and children’s car seats.

China’s commerce authorities said the extension of the trade truce until January 10 would provide both sides with more time to assess existing arrangements and discuss further cooperation.

The extension is also expected to provide businesses with a more predictable environment while officials continue discussions on investment opportunities, market barriers and policy transparency.

The two countries also agreed to establish an agriculture working group. Its first meeting is expected before the end of the year and will focus on market access and regulatory issues.

Another agreement calls for China to import 10 million metric tons of US coal annually in 2027 and 2028. However, oil and liquefied natural gas were not included in the latest tariff or purchasing arrangements.

The two sides also agreed to maintain communication on artificial intelligence and establish a channel for discussing AI-related incidents. Further talks are expected later this year.

China will also review applications from foreign financial institutions, including US-backed companies, seeking to operate and establish branches in the country.

Officials also agreed to continue discussions on increasing direct flights between China and the United States.