China, US discuss tariffs, farm trade ahead of Xi-Trump meeting
SPY•China and the United States discussed tariffs and agricultural trade at their first trade council meeting, days before an expected meeting between Xi Jinping and Donald Trump. A proposed $60 billion package of reciprocal tariff cuts has yet to be finalised.
1. Trade council talks
The two countries discussed implementing outcomes from previous economic and trade talks, including tariffs, a reciprocal "$30 billion-for-$30 billion" tariff-cut arrangement and agricultural trade, China's Commerce Ministry said. The ministry did not say whether they reached any agreements.
2. Tariff plan unresolved
After a September summit, the countries proposed $60 billion in reciprocal tariff cuts, including roughly $17 billion worth of US farm goods imported by China in 2024. The plan has not been finalised, and the ministry said both sides would continue using the council to address trade concerns, expand cooperation and reduce outstanding issues.
3. Farm trade context
Chinese purchases of US farm goods other than soybeans are on track to hit a seven-year low this year, despite an agreement to buy $17 billion annually through 2028. Beijing has urged Washington to implement the tariff-reduction deal, calling it a prerequisite for increasing purchases of US farm goods. The White House said Trump will meet Xi on Thursday on the sidelines of the Asia-Pacific Economic Cooperation forum in Shenzhen.
