CHINA and the United States have agreed to cut tariffs on US$60 billion worth of goods, while extending their trade truce to Jan 10 in moves aimed at providing businesses with a more stable and predictable policy environment.
Reuters reported on Monday that under the agreement, each side has recommended $30 billion worth of non-sensitive goods for more favourable tariff treatment, US Trade Representative Jamieson Greer said.
For the United States, the arrangement would improve market access for about 30% of its exports to China, Greer said.
China plans to cut tariffs on a range of US agricultural products, including corn, wheat, sorghum, meat, dairy products, vegetable oils and meals, while soybeans were excluded from the list.
Beijing also plans to reduce tariffs on US fish and seafood, logs and wood products, cosmetics and medical devices.
The United States, meanwhile, will reduce reciprocal tariffs on a range of Chinese consumer goods, including small household appliances such as coffee makers and toasters, tableware, blankets and bed linen.
The US list also includes toys, fireworks, artificial flowers, Christmas tree lights and other holiday decorations, as well as children’s car seats.
The tariff reductions were among the key outcomes of last week’s summit in Washington between Chinese President Xi Jinping and US President Donald Trump, their second meeting this year.
China’s Commerce Ministry said on Monday that extending the trade truce by two months would give both sides more time to assess their existing arrangements and consider how to advance negotiations on economic and trade issues.
The extension would also provide a “relatively stable and predictable policy environment” for business cooperation and continued discussions, the ministry said.
Both sides will hold regular talks on potential investment opportunities and barriers, policy transparency and predictability, and concerns raised by companies.
The summit also produced an agreement for China to import 10 million metric tonnes of US coal annually in 2027 and 2028, according to a White House release. The volume is equivalent to about 2% of China’s annual coal imports.
Liquefied natural gas and oil were not included in the agreement.
China’s Commerce Ministry said US coal would supplement the country’s domestic coal market while providing income and employment for the US coal industry.
On agriculture, both countries will establish an agriculture working group under a trade council, with its first meeting scheduled before the end of the year to discuss two-way market access and regulatory issues.
On financial services, China will examine and approve foreign financial institutions, including those with US capital, to conduct business and open branches in the country.
The two sides also agreed to establish a communication channel for artificial intelligence-related incidents and hold a follow-up dialogue by the end of November.
They will continue discussions on increasing flights between China and the United States, the Chinese ministry said.
Despite the agreements, Chinese stocks fell sharply on Monday as investors said the summit produced few concrete details, while underlying tensions remained.
Technology stocks were hit by a bipartisan US push to ban Chinese components from data centres, while the benchmark CSI300 index fell more than 2% to a one-year low. - September 28, 2026
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