US and China agree to mutual tariff reductions on $60 billion in trade

The United States and China have announced a mutual reduction of tariffs on goods valued at $60 billion, split equally at $30 billion for each side. This decision follows the second summit this year between President Donald Trump and President Xi Jinping, which took place last week in Washington. The agreement also includes a two-month extension of the ongoing trade truce between the two nations.

As part of the deal, Beijing will reduce tariffs on various American agricultural and industrial products, including corn, wheat, sorghum, meat, dairy, vegetable oils, wood, cosmetics, and medical devices. Notably, soybeans are excluded from this list as they are currently managed under previous import arrangements. US Trade Representative Jamieson Greer stated that these adjustments will improve access to the Chinese market for approximately 30% of American exports. The measures focus on categories classified as non-sensitive goods.

This development marks a de-escalation in the protracted trade tensions between the world's two largest economies. The current status involves the implementation of the new tariff schedules as outlined in the documentation released by the White House, with the broader trade truce serving as a foundation for further negotiations in the coming months.