The United States and China have agreed on a plan to lower tariffs on about $30 billion worth of goods traded between the two countries, including American farm products and Chinese household goods.
Under the agreement, each country identified about $30 billion in products that could receive lower tariffs. China’s list includes U.S. corn, wheat, meat, dairy products, seafood, wood products, cosmetics and medical devices. The U.S. list includes Chinese toys, household appliances, tableware and other consumer goods.
The agreement could open more of the Chinese market to American farmers and businesses while lowering tariffs on some everyday products imported into the United States. U.S. Trade Representative Jamieson Greer said the products covered represent about 30% of U.S. exports to China.
One major American export is missing from China’s tariff-cut list: soybeans. U.S. soybeans will continue to face an additional 10% Chinese tariff, even though China remains one of the biggest markets for American soybean farmers.
The tariff agreement follows last week’s meeting between President Donald Trump and Chinese President Xi Jinping in Washington. The two countries have also extended their broader trade truce until January 10, giving both sides more time to negotiate other trade disputes.
The Readovia Lens
The new tariff agreement does not end the long-running trade disputes between the United States and China, but it gives American farmers and businesses better access to the Chinese market while potentially reducing costs on some goods imported by U.S. consumers.
