+34
HONG KONG (AP) — The United States and China released Monday reciprocal lists of products worth about $30 billion that will see tariff cuts, in a deal expected to boost bilateral trade.
HONG KONG — The United States and China released Monday reciprocal lists of products worth about $30 billion that will see tariff cuts, in a deal expected to boost bilateral trade.
The U.S. had already reduced tariffs against China after Trump's tariffs reached as high as 145% at one point last year, as tensions between the two countries eased. The lists included 1,619 items of U.S. goods entering China, ranging from agricultural commodities, personal care products to timber and medical equipment. For Chinese goods exported to the U.S., 77 items were covered, including fireworks, tableware, glass and wooden Christmas ornaments and soccer balls.
Tariff rates on over 90% of the products would be subject to"most-favored-nation" levels, the Chinese commerce ministry said, meaning that country-specific tariffs will effectively be eliminated. U.S. Trade Representative Jamieson Greer said in a separate statement the product lists focused on"non-sensitive goods on each side that could benefit from more favorable tariff treatment.
" The deal could help secure market access for U.S. farmers, manufacturers, businesses and workers, while benefiting American consumers with imports from China including household goods and toys, Greer said. Both countries said they agreed the list may be adjusted later as needed, but amendments were likely to be annual.
The Chinese commerce ministry said the two countries agreed to further cooperate in the agricultural sector, forming a group under the Board of Trade established in May to optimize bilateral trade.
"This is a positive outcome for these affected products compared to a smaller tariff cut, and could lead to a more significant boost to bilateral trade," said Lynn Song, chief economist for Greater China at ING Bank. The lowered tariffs could be a win for U.S. consumer brands, added Jacob Cooke, CEO of WPIC Marketing + Technologies based in Beijing, as some of the products covered by China's list of U.S. imports included fast-growing categories like hair care, personal care products and infant formula.
The U.S. list for Chinese imports focused more on consumer goods, which could help lower U.S. inflation while also allowing Chinese firms to export more of their overcapacity, said Gary Ng, a senior economist at French bank Natixis. U.S. exports to China were roughly $68 billion through the first seven months of this year, while Chinese exports to the U.S. were at around $270 billion for the first eight months, said Prashant Bhayani, chief investment officer for Asia at BNP Paribas Wealth Management.
A $30 billion deal each way will be"more meaningful" for U.S. exports to China in terms of percentage share, he said. While the deal did not cover strategic goods, analysts believe U.S.-China trade will likely continue to recover for the rest of the year after steep U.S. tariffs on Chinese products last yearlast year, will likely remain elevated.
By August, it stood at about $800 billion, putting it"on pace to exceed the 2025 record," according to Ecaterina Bigos, a senior market strategist with BNP Paribas Asset Management. The U.S. is also investigating China among 16 trading partners in its Section 301 probe on excess industrial capacity and However, with more meetings set between Trump and Xi, including at the Asia-Pacific Economic Cooperation summit in Shenzhen in November and at the Group of 20 summit in Florida in December, Song at ING said he would not expect a major flare-up of trade tensions before year-end.
"This is positive news," said Richard Chan of Golden Arts Gifts & Decor, which manufactures Christmas trees and decorations in southern China and supplies to countries including the U.S."The economy in both the U.S. and China is not really good, and the two sides should help each other more. " However, because most of this year's Christmas goods are already being shipped ahead of the peak holiday season, the tariff reductions may have limited effect for now.
FILE - A vendor waits for customers near Santa costumes for sale at the Yiwu International Trade Market in Yiwu, eastern China's Zhejiang province on April 10, 2025. - The Associated Press FILE - U.S. flag themed wearables are displayed at the Yiwu International Trade Market in Yiwu, eastern China's Zhejiang province, on April 10, 2025. - The Associated Press
President Donald Trump China China Commerce Ministry Personal Care Products President Xi Jinping
Canada Latest News, Canada Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
Trump Labels Strait of Hormuz Trump Strait as Iran Offers Deal, Saudi Intercepts MissilePresident Trump posted a map renaming the Strait of Hormuz as Iran proposed reopening the waterway within seven days if the U.S. lifts its naval blockade and waives oil sanctions. Saudi Arabia also intercepted a Houthi missile, and Iraq sought exemptions from U.S. sanctions on Iranian airlines.
Read more »
China and US Agree on $30 Billion Tariff Cuts, AI Hotline and Military Crisis Talks After Xi SummitChina and the United States reached an eight-point consensus during President Xi Jinping's three-day visit to Washington, covering reciprocal tariff reductions on $30 billion of goods, an AI dialogue and incident hotline, military crisis communications and extended trade truce.
Read more »
Trump's China Isolation Strategy Faces Mixed ResultsThe Trump administration's efforts to reshape global trade by pressuring allies to reduce ties with China have produced uneven results. Mexico has moved closer to Washington, while Canada and several Southeast Asian countries have pursued greater autonomy or delayed full implementation of trade agreements. Shared concerns about Chinese industrial overcapacity and control of critical minerals remain, but aggressive U.S. tariffs have raised sovereignty concerns and complicated cooperation.
Read more »
Trump asked Xi if China wants to buy U.S. arms, ambassador saysU.S. Ambassador to China David Perdue said President Donald Trump asked Chinese President Xi Jinping whether China would like to buy U.S. arms, while justifying a pending weapons sale to Taiwan. The comments came days after Xi's state visit to Washington.
Read more »