U.S. and China agree to cut tariffs on $60 billion of bilateral trade

The United States and China announced a reciprocal reduction of tariffs on about $60 billion worth of goods, with each side proposing $30 billion of non-sensitive products for lower duties. The move was presented as a step toward broader market access for U.S. exporters, which account for roughly 30% of the country's shipments to China.

Under the U.S.-China Board of Trade, Beijing will trim levies on a range of American agricultural items, including corn, wheat, sorghum, meat, dairy, vegetable oils and meals, while maintaining existing duties on soybeans. Additional cuts will apply to fish, seafood, logs, wood products, cosmetics and medical devices. Washington, in turn, will lower tariffs on Chinese small appliances such as coffee makers and toasters, as well as tableware, bedding, toys, fireworks, artificial flowers, holiday decorations and children’s car seats.

The two governments also agreed to extend a trade truce for two months, until Jan. 10, to allow more time to assess their ongoing arrangements and to provide a stable policy environment for businesses. Regular talks will address investment opportunities, barriers, and policy transparency, according to China’s commerce ministry.

"Importing U.S. coal is not only a beneficial supplement to China’s domestic coal market, but also brings stable economic income and employment to the U.S. coal industry," the ministry said.

The agreement includes the creation of an agriculture working group that will meet before year-end to discuss market access and regulation. China also committed to import 10 million metric tons of U.S. coal annually in 2027 and 2028, roughly 2% of its yearly coal imports. No cuts were announced for liquefied natural gas or oil.

Further provisions cover artificial-intelligence incident communication, approval of foreign financial services firms with U.S. capital to operate in China, and continued dialogue on expanding direct flights between the two countries.