Beijing, Sept 28 (Reuters) – China and the United States agreed to reduce the tariffs imposed on US$60 billion of goods imported from each other, covering a wide range of products from American corn to cosmetics and from Chinese appliances to toys.
Through the U.S.-China Trade Council, both countries recommended, each, US$30 billion in trade of non-sensitive goods for more favorable tariff treatment, said the U.S. Trade Representative Jamieson Greer in a statement released on Sunday.
For the United States, this meant “unlocking better market access” for about 30% of American exports to China, he said.
The reciprocal tariff cuts, as well as the extension of a trade truce, were among the main outcomes of the second summit this year between President Xi Jinping and U.S. President Donald Trump, held in Washington last week.
One of the two lists released by the White House showed that China planned to reduce tariffs on a variety of U.S. agricultural products, including corn, wheat, sorghum, meat, dairy, vegetable oils and flours. The list did not include soybeans.
Beijing would also seek to reduce tariffs on U.S. fish and seafood, logs and wood products, cosmetics, and medical devices.
In another list were the reciprocal tariff cuts from Washington for small Chinese home appliances, such as coffee makers and toasters, tableware, blankets and bedding.
The lists also included toys, fireworks, artificial flowers, Christmas tree lights and other festive decorations, as well as infant car seats.
LONGER TRADE TRUCE
China’s Ministry of Commerce said on Monday that a two-month extension of the trade truce with the United States, to January 10, would give room for both sides to assess the ongoing agreement to resolve economic and trade issues, while they consider how to move forward on these fronts.
The extension also provides a “relatively stable and predictable political environment” for cooperation between businesses and the continuation of active discussions, the ministry said.
Both sides will hold regular talks on potential investment opportunities and barriers, increasing transparency and the predictability of policies and addressing business concerns, the ministry said.
AGRICULTURE AND COAL
The choice of products by China for tariff reductions appears to have been made to help Beijing meet what the White House says is a commitment of US$17 billion for the purchase of agricultural products. China has already resumed large-scale purchases of U.S. soybeans under a deal signed last year to buy 25 million metric tons annually.
Both countries will establish a working group on agriculture under a trade council, which will hold its first meeting before year-end to discuss mutual market access and regulation, the Ministry of Commerce said.
The presidential summit also yielded an agreement for China to import 10 million metric tons of coal annually from the United States in 2027 and 2028, according to the White House. This volume amounts to about 2% of China’s annual coal imports.
Liquefied natural gas and crude oil were not on the list.
“The importation of coal from the United States is not only a beneficial complement to China’s domestic coal market, but also brings stable economic income and jobs to the U.S. coal industry,” the ministry said.
AI, FINANCIAL COMPANIES, AND DIRECT FLIGHTS
With regard to artificial intelligence, both sides agreed on a channel for incident reporting and will hold a follow-up dialogue by the end of November.
China will also examine and approve foreign financial services institutions, including those with American capital, so that they can operate and open branches in China.
There will also be ongoing communication about increasing the number of flights between China and the United States, the ministry’s statement said.
