Beijing, Sept. 28 (SANA) China and the United States have agreed on reciprocal tariff reductions covering about $30 billion worth of imports from each side, China’s Commerce Ministry said Monday, following their latest economic and trade talks.
Tariffs on around 90% of the products covered would return to most-favored-nation rates, the ministry said. The reductions will take effect simultaneously after both countries complete their domestic legal procedures.
The agreement was reached during the eighth round of bilateral economic and trade consultations, held in New York and Washington from September 20 to 23. The two sides also agreed to establish mechanisms for discussions on trade and investment, according to the ministry.
The U.S. reductions cover Chinese goods including toys, household appliances, baby products, kitchen and bathroom goods and holiday products. China’s list includes U.S. agricultural products, personal care products, medical devices and coal.
The ministry said including U.S. coal in the tariff arrangement was expected to facilitate Chinese imports in 2027 and 2028.
Trade and investment mechanisms
The planned China-U.S. Trade Council will provide a forum to expand bilateral trade and address outstanding disputes, the ministry said. An agricultural working group will discuss market access and regulatory issues and is expected to meet for the first time before the end of 2026.
The countries also agreed to establish an investment council for regular discussions on opportunities and obstacles facing businesses.
On financial services, the ministry reported a preliminary understanding under which China would consider applications from financial institutions, including U.S.-funded firms, to operate and open branches in the country. China called on Washington to provide a fair, transparent and stable policy environment for Chinese financial institutions.
The two sides will continue discussing their existing trade arrangements after their extension through January 10, 2027, with the aim of reaching a mutually acceptable solution, the ministry said. It said the extension would allow time to assess the arrangements and provide greater predictability for businesses.
The delegations also exchanged views on increasing direct passenger flights and agreed to remain in contact on the issue.
Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent discussed the risks and benefits of artificial intelligence. The two sides agreed to hold another dialogue before the end of November and establish a channel for communicating about AI incidents.
The ministry said senior-level economic and trade contacts would continue before the end of the year as the countries work to stabilize relations amid differences over tariffs, market access, investment and technology.
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