The United States and China have agreed to consider lower tariffs on $60bn worth of goods traded between them as the two economic powers seek to stabilise relations following a year-long tariff conflict.
The White House published lists of products that could qualify for reduced tariff treatment after President Donald Trump and Chinese President Xi Jinping held talks in Washington on Friday.
Under the framework, each country could receive lower tariff treatment on $30bn worth of non-sensitive goods from the other, although the White House did not specify the tariff rates or when the reductions would take effect.
The proposed arrangement covers 77 categories of Chinese goods that could receive favourable treatment in the US, including fireworks, Christmas decorations, household products, sporting equipment, child seats, electric shavers, fishhooks and clay targets.
China’s list covers 1,619 categories of US products, including beef, pork, poultry, seafood, grains, dairy products, whiskey, coal and timber. The list also includes chilled foie gras, rabbit hair, camels, whales and dolphins for breeding, coal-based products and ultrasound medical devices.
The US trade representative and China’s commerce ministry described the mechanism as a framework for reviewing the listed goods with a view to providing reciprocal reduced tariff treatment.
US Trade Representative Jamieson Greer said the framework followed the relationship between Trump and Xi and was intended to support more favourable tariff treatment for non-sensitive goods.
Greer said Washington would continue pursuing reciprocal trade while monitoring China’s commitments on agricultural and energy purchases and seeking greater market access for US farmers, manufacturers, businesses and workers.
China’s commerce ministry said the mechanism would help maintain stability in economic relations and create favourable conditions for exports of some Chinese products to the US.
The development followed an agreement by Washington and Beijing to extend their tariff war ceasefire by two months to January 10.
The truce was initially scheduled to expire in November and followed a trade conflict that at one stage pushed tariffs above 100 per cent.
China has also agreed to import at least 10 million metric tonnes of US coal in 2027 and 2028, according to the White House.
The latest framework comes as Trump seeks to reduce the US trade deficit with China. Greer said the deficit had fallen by about 40 per cent since Trump returned to the White House in January 2025, to about $140bn.
US Census Bureau figures put the US trade deficit with China at $297bn in 2024, before Trump began his second term.
Despite the progress on tariffs, disagreements remain over rare earths and critical minerals. Washington is pressing Beijing to accelerate supplies to the US and its allies, including Japan, after China restricted some exports.
The White House said the two countries were continuing to address US concerns over supply chain shortages involving rare earths and critical minerals.
Greer described the two-month extension of the tariff truce as a period for testing China’s compliance with its commitments.
Trump and Xi are expected to meet again twice before the end of the year, at the Asia-Pacific Economic Cooperation forum in Shenzhen in November and the G20 summit in Miami in December.
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