The United States and China on Monday released reciprocal lists of products worth about US$30 billion each that would see tariff cuts, from US hair products to Chinese toys, in a deal expected to boost bilateral trade.
The details came days after Chinese President Xi Jinping met US President Donald Trump in Washington on his first state visit to the US since 2015. The US had already reduced tariffs against China after Trump’s tariffs reached 145 percent at one point last year, as tensions between the two countries eased.
The Chinese Ministry of Commerce said in a statement that the agreement will help enhance trade cooperation.
Most country-specific tariffs have been virtually eliminated
The lists included 1,619 items of US goods entering China, ranging from agricultural goods, hair and personal care products to lumber and medical equipment. Coal from the United States will also be included.
For Chinese goods exported to the United States, 77 categories are covered, including fireworks, tableware, toys such as dolls and puzzles, glass and wooden Christmas ornaments, and soccer balls.
The Chinese Ministry of Commerce said that tariff rates on more than 90% of products will be subject to “most favored nation” levels, meaning that country-specific tariffs will be effectively eliminated.
MFN rates are the standard definitions applied under WTO rules, but they can vary from item to item and are often in the single digits.
US Trade Representative Jamison Greer said in a separate statement that the product listings focused on “goods that are not sensitive on each side and that could benefit from more favorable customs treatment.” Greer said the deal could help secure market access for American farmers, manufacturers, businesses and workers, while benefiting American consumers with imports from China including household goods and toys.
The two countries said they agreed that the list could be amended later as needed, but the adjustments would likely be no more than an annual basis.
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The Chinese Ministry of Commerce said that the two countries agreed to enhance cooperation in the agricultural sector, and to form a group affiliated with the Trade Council that was established in May to improve bilateral trade.
The agreement did not include sectors of strategic importance to both countries, such as chips, electric cars, and batteries.
“This is a positive outcome for these affected products compared to a smaller tariff reduction, and could lead to a greater boost to bilateral trade,” said Lin Song, chief economist for Greater China at ING Bank.
Jacob Cook, CEO of Beijing-based WPIC Marketing + Technologies, added that the reduced tariffs could be a win for US consumer brands, as some of the products covered by the US-China import list include fast-growing categories such as hair care, personal care products and baby formula.
With the US list of Chinese products more focused on consumer goods, it could help lower US inflation while also allowing Chinese companies to export more of their spare capacity, said Gary Ng, chief economist at French bank Natixis.
However, some experts said the economic impact of $30 billion in each direction may be limited overall.
Prashant Bhayani, chief investment officer for Asia at BNP Paribas Wealth Management, said US exports to China were about US$68 billion during the first seven months of this year, while Chinese exports to the US were about US$270 billion in the first eight months.
He said a $30 billion deal in each direction would be “more significant” for US exports to China in terms of percentage share.
China’s trade surplus is expected to remain high
While the agreement did not include sensitive strategic goods, analysts believe trade between the US and China is likely to continue to recover for the rest of the year after steep US tariffs on Chinese products last year hurt bilateral trade.
The United States and China last week also reached a two-month extension to January of a broader trade truce that was scheduled to expire on November 10.
China’s trade surplus, which reached a record high of US$1.2 trillion last year, is likely to remain high. By August, it had reached about $800 billion, putting this year’s surplus “on pace to exceed the record for 2025,” according to Ekaterina Bigos, chief market strategist at BNP Paribas Asset Management.
The United States is also investigating China among 16 trading partners in its Section 301 investigation into industrial overcapacity, and could impose additional tariffs on China when the investigation concludes.
However, with more meetings between Trump and Xi scheduled, including the Asia-Pacific Economic Cooperation summit in Shenzhen in November and at the G20 summit in Florida in December, ING’s Song said he did not expect a major eruption of trade tensions before the end of the year.
Exporters welcome the tariff agreement
Some Chinese exporters welcomed the tariff agreement announcements.
“This is positive news,” said Richard Chan of Golden Arts Gifts and Decoration, which makes Christmas decorations in southern China and supplies them to countries including the United States. “The economy in both the United States and China is not really good, and the two sides should help each other more.”
However, since most of this year’s Christmas goods are already shipped before the peak holiday season, the tariff cuts may have a limited impact on them at least for now.
& Edition 2026 The Canadian Press
