US and China agree on $60 billion tariff cuts and extend trade truce to January

Reciprocal tariff reduction lists

China and the United States published reciprocal tariff reduction lists covering $60 billion in non-sensitive goods, dividing concessions equally at $30 billion per country. Washington submitted a schedule of 77 product categories, focusing on consumer items including Christmas decorations, tableware, car seats, hunting targets, and fishing hooks. Beijing issued a catalog of 1,619 items, encompassing agricultural goods like corn, wheat, and sorghum, exotic meat, live animals, and medical equipment such as X-ray machines, ultrasound devices, pacemakers, and surgical robots. Trade in the agricultural and related products on Beijing's list reached approximately $17 billion in 2024. Soybeans were excluded from the tariff cuts and remain subject to an additional 10% duty, leaving private crushers dependent on state buyers. Chinese state-owned firms Sinograin and COFCO have bought more than 12 million metric tons of US soybeans, roughly half of the 25 million metric tons the White House claimed Beijing committed to buying annually through 2028.

Bilateral working groups and regulatory tracks

The tariff adjustments are organized under a newly established Board of Trade led by trade officials from both nations. US Trade Representative Jamieson Greer stated that the mechanism provides expanded market access for 30% of American exports to China while lowering prices on consumer imports. Both governments agreed to create an agriculture working group scheduled to hold its first formal session before the end of the year to evaluate market access and standards. Bilateral negotiators established an incident communication channel for artificial intelligence, with dedicated technical talks planned for late November. In the financial sector, Beijing agreed to process and approve license applications from foreign financial institutions, including those with American capital, seeking to establish domestic branches. The economic teams also agreed to maintain discussions on expanding direct commercial flights between both countries.

Craig Singleton, senior director for China at the Foundation for Defense of Democracies, described the current state of bilateral ties:

The US-China relationship has settled into a managed stalemate.

Truce extension and diplomatic negotiations

The tariff announcements follow last week's Washington summit between Donald Trump and Xi Jinping, which produced a two-month extension of the bilateral trade truce through 10 January. The original truce was negotiated in South Korea following tariff disputes that led China to restrict rare earth exports. The summit also yielded a bilateral energy contract under which China will import at least 10 million metric tons of US coal in 2027 and an equal volume in 2028. Both sides excluded sensitive commodities, including rare earth minerals and advanced artificial intelligence technologies subject to export controls, while deferring broader trade deadlines into next year. Although Trump broke diplomatic protocol to greet Xi at the airport, a courtesy not extended to a foreign leader in 11 years, no Chinese chief executive delegation accompanied Xi on the trip. The two leaders are scheduled to hold further discussions at upcoming international forums in Shenzhen and Miami before the end of the year.

Drew Thompson, a senior fellow at the S. Rajaratnam School of International Studies in Singapore, evaluated the overall outcome of the meeting:

The Trump-Xi summit created a positive political atmosphere but did nothing to narrow differences, or reduce mutual suspicions.