U.S. and China unveil tariff cut lists on $60 billion in goods after Trump-Xi summit

The United States and China released lists of goods recommended for reduced tariffs on Sunday, the most concrete outcome yet of last week's summit between President Donald Trump and Chinese leader Xi Jinping in Washington. Under what the White House calls a '30-for-30' framework, each country would lower duties on $30 billion worth of the other's imports — $60 billion in total — covering 77 Chinese products and 1,619 American ones.

The lists are recommendations, not automatic cuts. Both governments described the step as a way to ease frictions and improve market access, but neither side has said when lower rates would take effect or by exactly how much duties would fall. The current tariff truce — which holds Chinese goods at a 30% rate and U.S. goods at 10% — has been extended to January, according to U.S. Treasury Secretary Scott Bessent.

The Trump Administration will continue to pursue fair, balanced, and reciprocal trade with China by ensuring compliance with commitments on agricultural and energy purchases, pursuing balanced trade in non-sensitive goods, and securing market access for American farmers, manufacturers, businesses, and workers.— Jamieson Greer, U.S. Trade Representative

The U.S. list of Chinese imports eligible for relief is narrow and consumer-facing: toys, tableware, kitchen accessories, curtains, electric shavers, car seats, holiday decorations, inflatable balls, blankets including electric ones, and sporting equipment. Notably absent are higher-value manufactured goods or electronics. China's far longer list of American products — 1,619 items — leans heavily on agriculture: corn, wheat, frozen meat, seafood, poultry, dairy, eggs, peanuts, canned tomatoes, silk, wood products, cosmetics, and medical devices. China also committed to importing at least 10 million metric tons of U.S. coal annually in 2027 and 2028, according to CNN.

One notable absence on the Chinese list: U.S. soybeans. CNN described the omission as 'a blow to struggling American farmers who have been collateral damage from a years-long tit-for-tat trade war between the two countries.'

U.S. Trade Representative Greer said the agreement would improve market access for about 30% of U.S. exports to China. He also told CNBC that the U.S. goods trade deficit with China had fallen 40% since Trump took office and was on track to reach $140 billion this year, down from around $295 billion in 2024, according to U.S. Census Bureau data cited by CNN.

For businesses watching the calendar, the timing matters. Jacob Cooke, CEO at WPIC — a company that primarily helps U.S. brands sell in China — noted that if tariff cuts are implemented before the holiday season, they could provide a meaningful lift to U.S. retailers and consumers.

If we see the tariff cuts actually implemented before the holiday season, it could provide a welcome boost to U.S. consumption and to retailers.— Jacob Cooke, CEO, WPIC

On the Chinese side, Ryan Zhao, director of Jiangsu Green Willow Textile, told CNBC he expects second-half sales to grow 30% year-on-year if the cuts go through. Cooke also flagged that Beijing's import list includes fast-growing categories such as hair care and packaged pet food, where Chinese brands compete closely with American ones — making every tariff point count for margin.

Not everyone sees the lists as transformative. Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore, told Al Jazeera that both sides had largely listed goods that do not move the needle on overall trade flows. She added that while some U.S. consumer prices might ease, none of the items would make a dramatic difference to inflation or deliver meaningful relief to most American buyers. She was similarly skeptical about the Chinese list: 'Although there are many different agricultural products on the list, most are not actually exported to China or not exported in meaningful quantities.'

Instead, both sides have largely listed goods that do not move the needle on overall trade flows.— Deborah Elms, Head of Trade Policy, Hinrich Foundation

Two-way U.S.-China trade totaled $495 billion in 2025, down 25% from the prior year, according to the U.S. Trade Representative. The two countries have held a tariff truce since May 2025, when they met in Geneva, and have extended it multiple times. The goods listed Sunday are expected to be carved out of any future tariff measures.

Beyond trade, the Trump-Xi summit produced one other notable agreement: a bilateral channel to discuss artificial intelligence-related incidents. The two sides also agreed to use the term 'super intelligence' rather than 'artificial intelligence' to describe the emerging technology, and established what the White House called the U.S.-China Super Intelligence Dialogue. The next exchange under that framework is scheduled by November 2026, according to CNN.

Trump and Xi are expected to meet again at the Asia-Pacific Economic Cooperation summit in Shenzhen, China, in November, and at the Group of 20 gathering in Miami in December, according to Al Jazeera. The U.S.-China Board of Trade — the body that recommended the tariff lists — is set to meet at least once a quarter, with top officials convening 'whenever necessary.'

Why it matters — The tariff lists determine which everyday goods — from holiday decorations to farm exports — could get cheaper, and how quickly, as the world's two largest economies try to stabilize a trade relationship that has shrunk by a quarter in a single year.

Sources differ on U.S. goods trade deficit with China last year: More than $202 billion (cnbc.com) vs Around $295 billion in 2024 (cnn.com)

Reported by cnn.com, cnbc.com, reuters.com, ft.com, aljazeera.com