China and the United States have agreed to cut tariffs on $60 billion worth of goods imported from each other, covering products ranging from US corn and meat to Chinese household appliances and toys.
Under the US-China Board of Trade, each country has recommended $30 billion worth of non-sensitive goods for more favourable tariff treatment, US Trade Representative Jamieson Greer said in a statement on Sunday.
For the US, the agreement means “unlocking improved market access” for about 30% of its exports to China, Greer said.
The tariff cuts and an extension of the trade truce were among the key outcomes from the second summit this year between Chinese President Xi Jinping and US President Donald Trump, held in Washington last week.
One of two lists released by the White House showed China planned to reduce duties on a range of US agricultural products, including corn, wheat, sorghum, meat, dairy, vegetable oils and meals.
Soybeans were not included on the list.
Beijing will also consider lower tariffs on US fish and seafood, logs and wood products, cosmetics and medical devices.
A second list detailed Washington’s reciprocal tariff cuts on Chinese goods, including small household appliances such as coffee makers and toasters, tableware, blankets and bed linen.
The list also included toys, fireworks, artificial flowers, Christmas tree lights, other holiday decorations and children’s car seats.
China’s commerce ministry said on Monday that extending the trade truce with the US by two months, through to January 10, would give both sides time to assess their existing arrangements for resolving economic and trade issues.
It said the extension would also provide a “relatively stable and predictable policy environment” for cooperation between companies and continued discussions.
Both countries will hold regular talks on potential investment opportunities and barriers, while working to improve policy transparency and predictability and address concerns raised by businesses, the ministry said.
Chinese stocks fell sharply on Monday, with investors given few concrete details from the leaders’ summit.
Technology stocks also declined following bipartisan support in the US for a ban on Chinese components in data centres.
The benchmark blue-chip CSI300 index fell more than 2% to its lowest level in a year.
Faridah Abdulkadiri
Follow us on:
