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[BUSINESS] · United States, China · 74 sources

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US and China agree to $60 billion reciprocal tariff reductions

Following a summit between President Xi Jinping and President Donald Trump in Washington, the United States and China have reached a series of economic agreements. A key component is a reciprocal tariff reduction framework covering approximately $30 billion in non-sensitive goods from each nation. For the US, this includes 77 categories such as toys, household appliances, and sporting equipment. China’s list includes 1,619 items, notably agricultural products like corn, wheat, and meat, as well as medical equipment and timber. Approximately 90% of these products are expected to transition to most-favored-nation tariff rates.

The two nations also agreed to extend their existing trade truce until January 10, 2027. To manage future economic relations, they will establish a Board of Trade and a Board of Investment. The Board of Trade will oversee the tariff reductions and include an agricultural working group. Additionally, the countries will launch a bilateral dialogue on artificial intelligence, with the next round scheduled for November, and establish a communication channel for AI-related incidents.

On the security front, the militaries of both nations agreed to sign a memorandum of understanding to strengthen crisis communication and prevention. China also committed to exploring increased imports of US coal for 2027 and 2028.

Entities

China · Donald Trump · Jamieson Greer · Ministry of Commerce of the People's Republic of China · Scott Bessent · U.S.-China Board of Trade · US-China Board of Trade · United States · United States Trade Representative · Wang Yi · White House · Xi Jinping

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