US and China agree to cut tariffs on 30 billion dollars of goods

The United States and China have published reciprocal lists of goods worth approximately 30 billion dollars each, on which they intend to reduce tariffs. The measures mark the latest step in de-escalating the trade conflict between the world’s two largest economies, although no specific timeline has been provided for the implementation of these cuts. The lists cover a wide array of consumer and agricultural items, ranging from toasters and bed linen to artificial flowers and live dolphins.

The American list identifies 77 categories of Chinese products, including garden umbrellas, fish hooks, and billiard balls. In response, the Chinese list encompasses 1,619 types of US goods. This includes a broad spectrum of foodstuffs such as butter, offal, lobster, and foie gras. The Chinese list also features coal, scientific equipment like MRI systems, rabbit hair, and various animals designated for breeding purposes. Han Lin, China country director at The Asia Group, noted that while the inclusion of animals such as whales and dugongs is eye-catching, it primarily demonstrates the granular nature of tariff codes rather than representing an exotic trade narrative.

These announcements follow a recent summit in Washington between President Donald Trump and President Xi Jinping, which aimed to stabilise the volatile relationship between the two nations. Zhu Tian, a vice-president at the China Europe International Business School, described the move as a positive step but not a major breakthrough. He observed that the reductions cover a relatively small share of total trade and that tariffs on more strategic goods remain in place. However, he emphasised the significance of the two sides moving from avoiding escalation to actively reducing some duties.

The agreement was brokered through the US-China Board of Trade, established during Trump’s visit to Beijing in May. US Trade Representative Jamieson Greer stated that each side had recommended 30 billion dollars of non-sensitive trade that could benefit from more favourable treatment. He added that the list represents improved market access for about 30 percent of US exports to China. The Chinese commerce ministry indicated that levies on more than 90 percent of the products would be subject to most favoured nation levels.

Notably, sensitive categories such as semiconductors, batteries, and electric vehicles are excluded from these tariff cuts. US whole soya beans, which became a target during the 2025 trade war, are also absent from Beijing’s list, meaning they continue to face an additional 10 percent tariff. The recent Xi-Trump meeting resulted only in a two-month extension of a wider trade truce first established in Busan, South Korea. Lin characterised the current situation as managed stabilisation, where both sides are carving out non-sensitive trade for cooperation, rather than a comprehensive trade reset.