China and US Agree to $30 Billion Reciprocal Tariff Reduction
China and the United States agreed to reciprocal tariff reductions on $30 billion of goods, including increased Chinese imports of US coal through 2028.
The Ministry of Commerce of the People's Republic of China and the United States reached a consensus to implement reciprocal tariff reductions on approximately 30 billion U.S. dollars worth of goods. Under this framework, tariffs on 90 percent of covered products will move to most-favored-nation rates. The agreement specifically includes increased Chinese imports of U.S. coal for 2027 and 2028, which the ministry stated will complement China's domestic market while providing stable revenue and employment for the U.S. coal industry.
The deal follows the eighth round of economic and trade consultations held from September 20 to 23 in New York and Washington, D.C., and a state visit by President Xi Jinping to the United States from September 23 to 25 at the invitation of President Donald Trump.
To institutionalize this cooperation, the two nations established a Board of Trade, a Board of Investment, and an agricultural working group co-chaired by the Ministry of Commerce and the Office of the United States Trade Representative. Additionally, Vice Premier He Lifeng and Treasury Secretary Scott Bessent initiated a dialogue on the risks and benefits of artificial intelligence. The parties also extended joint arrangements from Kuala Lumpur through January 10, 2027, and discussed increasing direct passenger flights.
