The United States and China have agreed to pursue tariff cuts covering US$60 billion (RM245 billion) worth of goods traded between the two countries, following last week’s summit between President Donald Trump and Chinese President Xi Jinping.
Under the agreement, each side has proposed more favourable tariff treatment for US$30 billion worth of non-sensitive goods imported from the other country. However, neither Washington nor Beijing has specified the extent of the tariff reductions or when they will take effect.
US Trade Representative Jamieson Greer said the move could improve market access for about 30% of US exports to China. The proposed product lists were valued using 2024 import data.
China’s proposed tariff cuts cover a range of American agricultural products, including corn, wheat, sorghum, meat, dairy products, vegetable oils and meals. It also plans to reduce tariffs on US seafood, timber, cosmetics and medical devices.
However, US soybeans were notably excluded from China’s tariff-reduction list, despite being the largest US agricultural export to China, worth US$16.2 billion in 2025. The American Soybean Association expressed disappointment, saying the continued tariff would limit opportunities for private Chinese buyers.
Meanwhile, the US has proposed tariff reductions on a range of Chinese consumer products, including toys, children’s bicycles, small household appliances such as coffee makers and toasters, tableware, blankets, bed linen, fireworks, artificial flowers, holiday decorations and children’s car seats.
Toys represented the largest category on the US list, with imports worth US$14.4 billion in 2024. That figure fell to US$9.8 billion in 2025 amid higher US tariffs.
The two countries have also agreed to extend their existing trade truce by two months until January 10, giving negotiators additional time to work on trade and economic issues. China said the extension would provide a relatively stable and predictable environment for businesses and further negotiations.
As part of the broader agreement, China is expected to import 10 million metric tonnes of US coal annually in 2027 and 2028. However, US liquefied natural gas and crude oil were not included in the agreement.
Both countries will also establish an agriculture working group, with the first meeting expected before the end of the year, to discuss market access and regulatory issues.
Beyond trade, Washington and Beijing agreed to establish a communication channel for artificial intelligence-related incidents and hold another AI dialogue by the end of November.
China also said it would examine applications from foreign financial institutions, including US-backed firms, to operate and establish branches in the country. The two sides will continue discussions on increasing direct flights between the US and China.
Despite the new measures, markets reacted cautiously, with Chinese stocks falling sharply on Monday as investors looked for more concrete details from the Trump-Xi summit. The lack of a clear implementation timeline also leaves uncertainty over how quickly the proposed tariff reductions will take effect.
