China and US Agree to Cut Tariffs on $60 Billion Worth of Goods

Reuters

A shipment of containers at a port.

China and the United States have agreed to reduce tariffs on $60 billion worth of goods traded between the two countries, covering a wide range of products from US corn and Chinese household appliances to cosmetics and toys.

Under the US-China Board of Trade, both countries have each recommended $30 billion of trade in non-sensitive goods for more favourable tariff treatment, US Trade Representative Jamieson Greer said in a statement on Sunday.

For the United States, that was "unlocking improved market access" for about 30% of US exports to China, he said.

The reciprocal tariff reduction as well as an extension of a trade truce were among the key takeaways from the second summit this year between President Xi Jinping and US President Donald Trump, hosted in Washington last week.

One of two lists ⁠from the White House showed that China planned to trim duties on a variety of US agricultural goods including corn, wheat, sorghum, meat, dairy, vegetable oils and meals. It did not include soybeans.

Beijing will also look to reduce levies on US fish and seafood, logs and wood products, cosmetics and medical devices.

In another list were Washington's reciprocal tariff cuts for Chinese small appliances such as coffee makers and toasters, tableware, blankets and bed linens.

The lists also included toys, fireworks, artificial flowers, Christmas tree lamps and other holiday decorations, and children’s car seats.

China's commerce ministry said on Monday a two-month extension of a trade truce with the United States through to January 10 would provide room for both sides to evaluate their ongoing arrangement to resolve economic and trade issues, while considering how to advance on those fronts.

The extension also provides a "relatively stable and predictable policy environment" for cooperation among companies and continued active discussions.

Both sides will hold regular talks on potential investment opportunities and barriers, enhancing policy transparency and predictability, and responding to enterprises' concerns, the ministry said.

Source: Reuters



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