US, China agree on reciprocal tariff-cut lists covering $30B each in imports

The US and China agreed on reciprocal tariff-reduction arrangements covering approximately $30 billion worth of imported goods on each side, with around 90% of items set to transition to most-favored-nation rates, US officials announced Sunday.

The arrangement was among the outcomes of economic and trade consultations held by Chinese and US teams in New York and Washington from Sept. 20-23, China's Commerce Ministry, known as MOFCOM, said on Monday.

The US published lists detailing the products that would receive reduced tariff treatment. More than 1,600 Chinese products imported by the US are covered, including household goods such as plates, kitchenware, bed and table linens, microwave ovens and other small electrical appliances, as well as toys, sporting goods, children's products, games and seasonal decorations.

The US said China would cut tariffs on 77 categories of American products, including beef, lamb, poultry, seafood and dairy products, as well as wheat, corn, rice and other grains. Coal, timber, fruit, vegetables, medical equipment and other agricultural, energy and industrial products are also included.

The two sides will implement the tariff reductions simultaneously after completing procedures required under their respective domestic laws, MOFCOM said.

"The Trump administration will continue to pursue fair, balanced, and reciprocal trade with China by ensuring compliance with commitments on agricultural and energy purchases, pursuing balanced trade in non-sensitive goods, and securing market access for American farmers, manufacturers, businesses, and workers," US Trade Representative Jamieson Greer said.

Approximately 90% of the products covered will have tariffs reduced to MFN rates, according to the US side.

"This arrangement will help to further stabilize China-US economic and trade relations and create favorable conditions for China's exports of relevant products to the US," MOFCOM said.

China and the US also agreed to establish a bilateral trade council under their economic and trade consultation mechanism, with facilitating bilateral trade as its primary task.

Tariffs on US coal exports to China will be included in the reciprocal $30 billion tariff-reduction framework, which MOFCOM said would facilitate Chinese imports of US coal in 2027 and 2028.

The two countries also agreed to establish an investment council and an agricultural working group jointly led by MOFCOM and the Office of the US Trade Representative. The agricultural working group is expected to hold its first meeting before the end of 2026.

The ministry said the two sides also reached an agreement in principle on financial services and established an artificial intelligence dialogue led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent.

The next AI dialogue is expected before the end of November, while the two sides also agreed to establish a communication channel for AI-related incidents.

- Working procedures for US-China Board of Trade

The US also announced the operational procedures for the newly established US-China Board of Trade, a bilateral body tasked with optimizing commerce between both nations.

Under the framework, the entity is overseen by principals comprising Bessent and Greer on the American side, and Lifeng on the Chinese side.

Deputies representing both governments will meet at least quarterly to formulate concrete tariff proposals, discuss issues that impact bilateral trade and evaluate additional initiatives.