The United States and China are preparing to reduce tariffs on about $60 billion worth of goods, covering products ranging from U.S. agricultural goods and seafood to Chinese toys and household appliances.
The agreement follows last week’s Washington summit between President Donald Trump and Chinese leader Xi Jinping and comes alongside another two-month extension of the countries’ trade truce.
Under the new arrangement, each country has identified roughly $30 billion worth of non-sensitive goods that could receive more favorable tariff treatment, according to a Sept. 27 statement from the Office of the U.S. Trade Representative.
U.S. Trade Representative Jamieson Greer said the two sides had “recommended $30 billion of trade in non-sensitive goods on each side” for possible tariff relief. He said the initiative was “unlocking improved market access” for U.S. exporters.
Based on 2024 trade figures, the U.S. products involved amount to roughly 30 percent of American exports to China, according to Reuters. Chinese tariff reductions would cover products including corn, wheat, sorghum, meat, dairy products, vegetable oils, seafood, wood products, cosmetics and medical devices.
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China’s Ministry of Commerce said in its official announcement of the framework that more than 90 percent of the products included in the reciprocal arrangement would have the additional tariffs imposed during the trade dispute removed, allowing them to receive most-favored-nation tariff treatment.
The United States, meanwhile, plans to reduce tariffs on Chinese products including coffee makers, toasters, tableware, blankets, bedding, fireworks, artificial flowers, holiday decorations and children’s car seats.
Toys, including children’s bicycles, represent the largest category on the U.S. list. Imports in that category totaled about $14.4 billion in 2024 before declining to $9.8 billion in 2025 following higher U.S. tariffs, Reuters reported.
The reductions have not yet taken effect. China’s Commerce Ministry said both countries would first complete their respective domestic legal procedures and then implement the tariff reductions simultaneously.
Soybeans remain a major exception
One of the most significant products missing from China’s tariff-relief list is soybeans, the largest U.S. agricultural export to the country.
China continues to impose an additional 10 percent retaliatory tariff on American soybeans, which limits the ability of private Chinese importers to compete for U.S. supplies. The American Soybean Association said on Sept. 28 that it was disappointed soybeans were not among the agricultural products receiving additional tariff relief.
ASA President Scott Metzger said China’s commitment to purchase at least 25 million metric tons of U.S. soybeans annually through 2028 “provides critical stability” for American farmers.
“China remains an important market for U.S. soybeans,” Metzger said.
The association said the remaining tariff means much of the soybean trade will continue to be conducted through Chinese state-owned enterprises rather than private buyers. Eliminating the tariff, it said, would make U.S. soybeans more competitive and allow more private Chinese companies to make purchases.
The problem is not limited to tariffs. Reuters reported on Sept. 30 that Chinese soybean processors are carrying their highest inventories in at least 15 years, while many private crushers have already secured supplies from Brazil and Argentina.
“We are not interested in making further purchases as these will incur losses,” one senior Chinese oilseed-processing executive told Reuters.
Soybean futures in Chicago fell sharply following the announcement, reflecting disappointment that soybeans were excluded from the tariff reductions and prompting some traders to unwind bullish positions, Reuters reported.
Trade truce extended as talks expand to coal and AI
The tariff arrangement forms part of a broader package of agreements reached around the Trump-Xi summit.
The two countries agreed to extend their existing trade truce by another two months, through Jan. 10, 2027. China’s Commerce Ministry said the extension would give businesses a more “stable and predictable policy environment” while negotiators continue working through outstanding economic and trade issues, according to Reuters.
Agriculture will remain a major focus. According to China’s Commerce Ministry, the countries will establish an agricultural working group to address regulatory issues, market access and other trade concerns, with its first meeting planned before the end of 2026.
China has also committed to purchasing at least 10 million metric tons of U.S. coal in 2027 and another 10 million metric tons in 2028, according to the White House fact sheet on the Trump-Xi meetings.
China’s Commerce Ministry said importing American coal would be a “beneficial supplement to China’s domestic coal market” and would provide “stable economic income and employment” for the U.S. coal industry.
Liquefied natural gas and oil were not included in the new purchase commitments.
Artificial intelligence is also becoming part of the bilateral negotiations. The two sides agreed to establish a communications channel for AI-related incidents and plan further discussions, while Beijing will consider applications from qualified foreign financial institutions seeking to expand operations in China.
The countries also agreed to continue discussions on increasing direct passenger flights between the United States and China.
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