China and US Agree to Discuss $30 Billion Tariff Reductions
China and the United States agreed in principle to discuss a reciprocal tariff reduction framework covering at least $30 billion in products on each side.
The Government of China and the United States have agreed in principle to discuss a reciprocal tariff reduction framework covering products of equivalent scale worth $30 billion or more for each side. The agreement follows strategic guidance from the heads of state of both nations and economic and trade consultations held in South Korea during the second week of May 2026.
Under the proposed arrangement, agreed-upon products would be subject to most-favored-nation tariff rates or lower. The process will be managed under the trade council, with economic and trade teams from both countries tasked with maintaining close communication to finalize specific arrangements and accelerate implementation.
China's Ministry of Commerce stated that the framework aims to stabilize bilateral trade and serve as a reference for global cooperation. The ministry requested that the United States honor its commitments to ensure tariff levels on Chinese goods do not exceed those established during previous consultations in Kuala Lumpur and called for the removal of unilateral tariffs through further discussions.
