US-China trade tensions ease with $30 billion reciprocal tariff cuts

The United States and China have reached a consensus on a $30 billion reciprocal tariff-reduction arrangement aimed at easing trade tensions during Chinese President Xi Jinping’s visit to the US.

According to China’s Foreign Ministry, both sides also endorsed the establishment of a trade council.

As per the White House statement, through the Board of Trade, both nations agreed to recommend preferential tariff treatment for $30 billion worth of non-sensitive goods mutually.

Speaking about the US exports, the goods include agricultural goods, seafood, fish, wood products, cosmetics and medical devices.

The US imports include small appliances, toys, holiday decorations, and children’s car seats. “China will import at least 10 million metric tons of coal from the United States in 2027 and again in 2028,” the White House added.

Additionally, the board established a dedicated working group to tackle market access hurdles in agriculture.

Both sides “continue to work on US concerns regarding supply chain shortages related to rare earths and other critical minerals, with the goal of ensuring shipment levels return to appropriate levels,” the statement added.

The announcement comes as Chinese president Xi Jinping completed a three-day visit to the US and held a summit with Trump.

Both sides also agreed to extend the trade truce by two months which was due to expire on November 10, allowing them more time for negotiating a larger trade agreement.