China and the United States have agreed to reduce tariffs on approximately $30 billion worth of goods from each country, marking a significant step forward in their ongoing trade negotiations. The decision came after recent economic and trade consultations between the two nations.
Under the new agreement, tariffs on about 90% of the affected products will be lowered to most-favoured-nation rates. These tariff reductions will be implemented simultaneously once both countries complete their necessary domestic procedures.
In addition to the tariff reductions, China and the US have decided to extend their current economic and trade arrangement beyond the original expiration date. The agreement, which was due to end on November 10, 2026, will now remain in effect until January 10, 2027, providing more time for negotiations on a longer-term deal.
To further enhance bilateral trade discussions, the two nations will establish a Board of Trade. An agricultural working group will also be formed to address market access and regulatory issues specific to the agricultural sector.
The agreement also includes the creation of a bilateral investment board aimed at discussing investment opportunities, trade barriers, and ensuring policy transparency. Additionally, both countries have committed to continuing discussions on artificial intelligence, with a new communication channel for AI-related incidents and another round of talks scheduled before the end of November.