China Confirms Its Side of $30 Billion US Tariff-Cut Deal

The United States and China have finalized product lists for a plan to cut tariffs on roughly $30 billion of imports from each side, with Beijing's commerce ministry now formally confirming the framework unveiled days after a Trump-Xi summit in Washington.²⁵¹⁰¹³

What each side listed

The U.S. list contains 77 entries covering products from China such as fireworks, household products, sports equipment and toys. China's list contains 1,619 goods from the United States, spanning categories such as beef and pork, fish and shellfish, milk products, cereals, coal, lumber and medical devices.¹²⁴⁵

CNBC reported that agricultural goods from the U.S. dominate China's import list, and that rapidly expanding segments like hair care items and pet food packages are also included.¹³

Tariff mechanics and purchase commitments

Under the arrangement, about 90% of the listed products would have tariffs reduced to most-favoured-nation rates, a framework China's Commerce Ministry has now formally confirmed. Reports on the arrangement indicate China has committed to purchasing a minimum of 10 million tonnes of U.S. coal annually across 2027 and 2028, with Chinese state media confirming coal's formal inclusion in the reduction framework. Officials said the product lists may also be adjusted on an annual basis.²⁶¹⁰¹¹

The Straits Times reported that tariff reductions would take place simultaneously after each side completes domestic legal procedures.⁶²

Extended truce and new institutions

The two countries also agreed to extend their broader trade truce, originally due to expire on November 10, by two months to January. U.S. Treasury Secretary Scott Bessent said negotiators had agreed to the extension.³⁷¹

The countries established a U.S.-China Board of Trade — referred to in Chinese state media as a Trade Council — along with an agricultural working group set to gather for the first time before 2026 concludes.¹²⁷¹⁰

Trade backdrop

The product lists follow a period of elevated tension: the U.S. goods trade deficit with China exceeded $202 billion last year, and the two countries had imposed import tariffs of more than 40% and more than 30% respectively, with U.S. tariffs reaching as high as 145% at one point, according to reporting. China's trade surplus hit an all-time high of $1.2 trillion the previous year and had climbed to roughly $800 billion by August, as Chinese exports to the U.S. totalled around $270 billion over the first eight months of the year against roughly $68 billion in U.S. exports to China over the first seven months.³⁵⁶

The Chinese Commerce Ministry said the arrangement would help stabilise trade relations, stating: "This arrangement will help to further stabilise China-US economic and trade relations and create favourable conditions for China's exports of relevant products to the US." U.S. Trade Representative Jamieson Greer said the lists focused on "non-sensitive goods on each side that could benefit from more favorable tariff treatment."²³

Market and industry reaction

Jacob Cooke, head of WPIC Marketing + Technologies in Beijing, suggested retailers stand to gain from swift implementation, stating: "If we see the tariff cuts actually implemented before the holiday season, it could provide a welcome boost to U.S. consumption and to retailers." He added that "every percentage point counts for price competitiveness and preserving margin." Ryan Zhao, meanwhile, projected second-half sales could rise 30% year-over-year if the tariff cuts go into effect.¹

Analysts cited by AFP offered mixed but broadly positive assessments.³⁶

Richard Chan, from Golden Arts Gifts & Decor, warned that since the bulk of this season's Christmas merchandise has already left for shipment ahead of peak demand, the tariff cuts are unlikely to make much difference for now.⁵