US and China Target Tariff Relief on 30 Billion Dollars of Goods in Each Direction
China and the United States have set out tariff relief covering 30 billion dollars of goods in each direction after President Xi Jinping’s state visit to the United States from 23 to 25 September. The 8 point consensus released by Xinhua on 26 September calls it a reciprocal tariff reduction arrangement, while the White House described consensus on recommendations for more favorable tariff treatment for 30 billion dollars of non-sensitive goods in each direction. That is equal to 28.3 percent of US goods exports to China in 2025 and 9.7 percent of US imports from China, on our calculation.
What each side listed
On the US export side the goods include agricultural products, fish and seafood, logs and wood products, cosmetics and medical devices. On the import side they include small appliances, toys, holiday decorations and children’s car seats. The two leaders put into operation a US-China Board of Trade and a Board of Investment. The White House said the Board of Trade also launched a working group on agricultural market access, and that China will import at least 10 million metric tons of US coal in 2027 and again in 2028. The Chinese text refers to a trade council, and says the extension of the outcomes of the Kuala Lumpur trade talks was also agreed, with both leaders instructing that the results be implemented.
The trade it applies to
| Period | US exports to China ($bn) | US imports from China ($bn) | US balance ($bn) |
|---|---|---|---|
| 2024 | 143.3 | 440.3 | -297.0 |
| 2025 | 106.0 | 308.7 | -202.7 |
| Jan to Jul 2026 | 65.2 | 156.4 | -91.2 |
US Census Bureau goods trade data, nominal, not seasonally adjusted.
Two way goods trade fell 29.0 percent to 414.6 billion dollars in 2025, on our calculation, and the 60 billion dollars covered in both directions equals 14.5 percent of that total. Neither side has yet published the product lists or new rates.
Why it matters: The arrangement attaches named product groups on both sides to the tariff relief, and on our calculation it reaches more than a quarter of US exports to China, with farm goods first on the list.
Outlook: The product lists and implementation dates are the next step, alongside the truce extension to 10 January that CNBC reported on 24 September.
Sources: Xinhua, White House, US Census Bureau, CNBC.
