China and the US agree to reduce tariffs on $60 billion worth of commodities, including household and agricultural products.

China and the US have reached an agreement to reduce tariffs on $60 billion worth of items that are imported from each other. These goods include everything from Chinese household appliances to toys, and from US maize to cosmetics.

US Trade Representative Jamieson Greer said in a statement on Sunday that both nations had suggested $30 billion in trade in non-sensitive commodities for more favorable tariff treatment under the US-China Board of Trade. According to him, this was “unlocking enhanced market access” for roughly 30% of US exports to China.

Among the main conclusions of President Xi Jinping and US President Donald Trump’s second meeting of the year, which was held in Washington last week, were a reciprocal tariff decrease and an extension of a trade truce.

China intends to reduce tariffs on a number of US agricultural products, including maize, wheat, sorghum, beef, dairy, vegetable oils, and meals, according to one of two lists released by the White House. Soybeans were not included.  Beijing would also try to lower taxes on US fish and shellfish, wood products and logs, cosmetics, and medical equipment. Washington’s reciprocal tariff reduction, which open a new tab for Chinese small items including coffee makers and toasters, dinnerware, blankets, and bed linens, were included in another list.

A two-month extension of a trade truce with the United States through January 10, according to China’s commerce ministry on Monday, would allow both parties to assess their current agreement to resolve trade and economic issues while thinking about how to move forward on both fronts.

Additionally, the extension offers a “reasonably stable and predictable policy framework” for business collaboration and ongoing dialog. The ministry stated that both parties will regularly discuss possible investment possibilities and obstacles, improve policy predictability and transparency, and address business concerns.

China is implementing tariff cuts to fulfill a $17-billion commitment to purchase agricultural products from the U.S., including a resumption of large-scale soybean imports under a previous agreement. An agriculture working group will be established to enhance market access and regulation. Additionally, agreements were made for China to import 10 million metric tons of U.S. coal annually in 2027 and 2028, amounting to about 2% of China’s coal imports, which benefits both China’s domestic market and the U.S. coal industry.

On artificial intelligence, both parties have established a communication channel for incidents and will engage in follow-up dialogue by the end of November. China will also evaluate and authorize foreign financial services institutions, including those with US capital, to operate and open branches in the country. Additionally, there will be ongoing discussions regarding increasing flights between China and the United States, according to the ministry statement.