On September 28, the Ministry of Commerce announced information regarding the China-U.S Trade Council and the “30 billion for 30 billion” reciprocal tariff reduction framework.
In May 2026, the heads of state of China and the United States met in Beijing and agreed to establish a bilateral intergovernmental trade council. From September 20th to 23rd, the eighth round of economic and trade consultations was held in New York and Washington, D.C., where agreements were reached regarding the working procedures of the Sino-US Trade Council, the responsibilities documents for the “30 billion vs. 30 billion” reciprocal tax reduction framework, and the list of products subject to tax reduction.
According to the working procedures, the task of the Trade Council is to optimize bilateral trade. It will discuss arrangements for optimizing bilateral trade and issues related to trade. It is believed that the Trade Council will provide an important platform and mechanism to support continuous expansion of cooperation between China and the US in the economic and trade fields, and to help build a constructive and stable strategic relationship between the two countries.
The Chinese and American sides have reached a consensus under the framework of the Trade Council regarding a $30 billion reciprocal tariff reduction agreement. Both parties have agreed to provide reciprocal tariff reduction treatments for their respective imported goods, each valued at approximately $30 billion (based on the 2024 bilateral trade volume). Under the conditions that comply with the respective domestic laws and procedures of both countries, over 90% of the products will be exempt from all additional tariffs and will enjoy the most favorable country tariffs.
Based on the needs of their respective markets and industrial interests, both sides agreed on a list of equivalent tariff-reduced products. The United States will reduce tariffs on imported goods from China worth approximately $30 billion, including toys, household appliances, baby products, kitchenware, and holiday gifts. China will also reduce tariffs on imported goods from the United States worth approximately $30 billion, including agricultural products, personal care products, medical devices, and coal. Both sides agreed to jointly announce their respective lists of tariff-reduced products. Subsequently, both sides will implement the tariffs reduction simultaneously after fulfilling the relevant domestic legal procedures. This arrangement helps to stabilize Sino-US trade relations, creates better conditions for China’s exports to the United States, and is also conducive to meeting domestic market demands, thereby strengthening trade cooperation between the two sides in areas such as agricultural products, energy, manufactured goods, and consumer goods.
Both parties agree to establish an agricultural working group under the Trade Council, to discuss issues related to regulation and market access, address trade concerns, and expand practical cooperation in the agricultural field. The agricultural working group plans to hold its first meeting by the end of 2026. China will continue to promote the US side to resolve Chinese concerns in the agricultural sector through this working group.
