China, US agree tariff cuts on $60 billion of goods including agriculture, household items
SPY•China and the United States agreed to cut tariffs on $60 billion worth of goods imported from each other, including agricultural products and household items. The deal also includes a trade-truce extension through January 10 and an agreement for China to import 10 million metric tons of US coal annually in 2027 and 2028.
1. Tariff cuts cover goods
Each country recommended $30 billion in non-sensitive trade for more favorable tariff treatment, US Trade Representative Jamieson Greer said. China plans to cut duties on US corn, wheat, sorghum, meat, dairy, vegetable oils and meals, among other products, but soybeans were not included. US tariff cuts cover Chinese small appliances, tableware, linens, toys and other goods.
2. Truce extended
China's commerce ministry said the two-month extension of the trade truce through January 10 would give both sides time to evaluate their arrangement and provide a relatively stable and predictable policy environment for companies. The countries will hold regular talks on potential investment opportunities and barriers, policy transparency and business concerns.
3. Coal and other discussions
The White House said China agreed to import 10 million metric tons of US coal annually in 2027 and 2028. The countries will establish an agriculture working group, agreed to an artificial-intelligence incident communication channel, and plan further discussions on financial services and direct flights.
