China and the United States have agreed to reduce tariffs on about $60 billion worth of goods, in a move aimed at easing trade tensions between the world’s two largest economies.
Under the arrangement, each country will provide more favourable tariff treatment to about $30 billion of imports from the other, with more than 90% of the covered products set to receive most-favoured-nation tariff rates after domestic procedures are completed.
China’s tariff reductions will cover a range of US agricultural products, including corn, wheat, sorghum, meat, dairy products and vegetable oils, as well as seafood, timber, cosmetics, medical equipment and coal.
The US will reduce tariffs on selected Chinese products including household appliances, kitchenware, toys, sporting equipment, blankets and holiday decorations.
The agreement follows last week’s meeting between US President Donald Trump and Chinese President Xi Jinping in Washington. The two countries also agreed to extend their trade truce until January and establish an agricultural working group to address market-access and trade issues.
The tariff measures are expected to provide greater certainty for businesses engaged in US-China trade, although major disagreements over technology, export controls and other strategic issues remain unresolved.
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