China and the United States will pursue tariff reductions on $60 billion worth of goods traded between them, covering everything from American corn and cosmetics to Chinese toys and household appliances — though each side left notable products off its list.
Under the newly established US-China Board of Trade, both countries have each recommended $30 billion of trade in non-sensitive goods for more favourable tariff treatment, US Trade Representative Jamieson Greer said in a statement on Sunday night.
For the United States, Greer said the arrangement amounts to “unlocking improved market access” for roughly 30 per cent of US exports to China. The reciprocal tariff reduction effort, along with an extension of the bilateral trade truce, ranked among the key takeaways from the second summit this year between President Xi Jinping and US President Donald Trump, hosted in Washington last week.
Neither side’s statements indicated the scale of the tariff reductions or any timeline for implementation. The USTR said the $30 billion valuation for the import lists proposed by each country was based on 2024 import data.
Soybeans Left Off the Table
One of two lists released by the White House showed that China plans to trim duties on a variety of US agricultural goods, including corn, wheat, sorghum, meat, dairy, vegetable oils and meals. But it excluded non-seed soybeans — the largest US agricultural export to China, worth $16.2 billion in 2025.
The American Soybean Association expressed disappointment at the omission, warning that Beijing’s 10 per cent retaliatory tariff would keep Chinese purchases of US soybeans in the hands of state-directed enterprises.
“Removing the tariff would improve the competitiveness of US soybeans and provide greater opportunity for private Chinese buyers,” the trade group said.
Chicago Board of Trade soybean futures plunged on Monday, reflecting traders’ disappointment at the announcement and the unwinding of a buildup of net long positions in soybean futures.
Beijing will nonetheless look to reduce levies on US fish and seafood, logs and wood products, cosmetics and medical devices, according to the Chinese list.
Consumer Goods and Toys Top US List
A second list set out Washington’s proposed reciprocal tariff cuts for Chinese consumer goods, including small appliances such as coffee makers and toasters, tableware, blankets and bed linens.
The broad category for toys, including children’s bicycles, topped the US list, totalling $14.4 billion in 2024 but falling to $9.8 billion in 2025 amid Trump’s higher tariffs, according to US Census Bureau data. The US list also included Chinese fireworks, artificial flowers, holiday decorations and children’s car seats.
Trade Truce Extended to January 10
China’s commerce ministry said on Monday that a two-month extension of the trade truce with the United States, running through to January 10, would give both sides room to evaluate their ongoing arrangement for resolving economic and trade issues while considering how to move forward.
The extension also provides a “relatively stable and predictable policy environment” for cooperation among companies and continued active discussions, the ministry said.
Both sides will hold regular talks on potential investment opportunities and barriers, enhance policy transparency and predictability, and respond to enterprises’ concerns.
Markets offered little applause. Stocks fell sharply in China on Monday as investors found few concrete details to cheer from the leaders’ summit and underlying tensions resurfaced. Major US stock indexes also fell as investors’ focus shifted back to the stalemate in US-Iran talks, which sent oil prices higher.
Agriculture Working Group and Coal Commitments
China’s choice of products for tariff cuts appears designed to help Beijing meet what the White House describes as a $17 billion commitment to buy agricultural goods. China has already resumed large-scale buying of US soybeans under a deal struck last year to purchase 25 million metric tons annually.
The two countries will set up an agriculture working group under a trade council, which will hold its first meeting before the end of the year to discuss two-way market access and regulation, the commerce ministry 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 release. That amount roughly equals 2 per cent of China’s coal imports each year. Liquefied natural gas and oil were not on the list.
“Importing US coal is not only a beneficial supplement to China’s domestic coal market, but also brings stable economic income and employment to the US coal industry,” the Chinese ministry said.
AI, Financial Firms and Direct Flights
On artificial intelligence, both sides agreed to establish a communication channel for incidents 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 US capital, to conduct business and open branches in China. The ministry said there would be continued communication on increasing flights between the two countries.
