US and China Name Goods for Tariff Cuts Worth $30bn Each Way

San Francisco (GNP): The United States and China have published lists of products that could receive lower tariffs under a new trade arrangement covering $30 billion worth of goods in each direction. The step points to a further easing of trade tensions between the world’s two largest economies, though no tariff rates or timetable for putting the cuts into effect have been announced.

The lists follow a summit on Friday between US President Donald Trump and Chinese President Xi Jinping, where the two leaders discussed trade and other issues. The White House said the two sides agreed on recommendations for more favourable tariff treatment for what it called non-sensitive goods, and Beijing confirmed the agreement on Saturday. Under the terms released by Washington, both countries will now review the lists with a view to lowering duties on a reciprocal basis.

The two lists differ sharply in length. The United States could reduce tariffs on 77 categories of Chinese goods, including fireworks, Christmas ornaments, household items and sports equipment. China’s list is far wider, with more than 1,600 categories of American products, among them beef, pork, poultry, seafood, grains, dairy products, whiskey, coal and timber.

Coal also features in a separate commitment. According to the White House, China has agreed to import at least 10 million metric tonnes of American coal in each of 2027 and 2028, which adds a firm purchase target to the broader framework.

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The arrangement builds on a truce reached last year, when Trump and Xi met in South Korea after a tit-for-tat dispute that at one point pushed duties above 100 per cent. That truce was originally due to expire in November. US Treasury Secretary Scott Bessent said the two sides have agreed to extend it until January 10, which gives negotiators more time to settle the details still missing from the lists.

For now, the announcement sets out what could be traded at lower cost without saying by how much or when. The White House said the lists would be reviewed with a view to providing reduced tariff treatment on a reciprocal basis, and that remains the next step for both sides.