Following the Trump-Xi Summit, the US and China announce a $60 billion plan to cut tariffs.
Washington, September 29, 2026: The United States of America and China have released reciprocal lists of goods that might see lower tariffs as a new step toward easing trade tensions. The two lists cover goods worth around $60 billion in total, with roughly $30 billion linked to trade from each side.
The announcement comes after U.S. President Donald Trump and Chinese President Xi Jinping met in Washington, where trade and economic relations were among the major issues discussed.
What is included in the deal?
Around 1,619 U.S. products have been identified by China as potentially receiving preferential tariff treatment. The list includes a range of agricultural and consumer products, as well as medical and industrial goods.
Products mentioned include corn, wheat, sorghum, meat and dairy products, fish and seafood, vegetable oils, timber, cosmetics, personal-care products and medical equipment.
On the other side, the United States has identified around 77 categories of Chinese products for lower tariff treatment. These include products such as toys, puzzles, tableware, household appliances, blankets, linens, Christmas decorations, sports equipment and children's car seats.
The aim is to make trade in these less-sensitive products cheaper and easier for businesses in both countries.
Strategic items are not included in the deal
Despite the headline figure of $60 billion, the agreement does not cover several of the most sensitive areas of the U.S.-China economic relationship.
Semiconductors, electric vehicles, batteries and other strategic technology products are largely excluded.
As a result, Washington and Beijing's announcement should not be interpreted as a complete trade agreement. Major disagreements over technology, supply chains and strategic industries are still unresolved.
When will the tariff cuts begin?
The precise date of implementation has not yet been specified. China has indicated that the tariff changes will go through its required domestic procedures before taking effect. The final implementation arrangements will also determine the precise tariff reduction for each product.
China has stated that more than 90% of the products on its list could receive most-favored-nation tariff treatment, which would maintain normal tariff rates while eliminating many additional country-specific tariff charges.
What does the $60 billion figure actually mean?
The $60 billion figure refers to the approximate value of goods covered by the two lists. It does not imply that $60 billion in tariff revenue will be eliminated by the United States and China.
The actual economic benefit will depend on the final tariff rates, when the changes take effect and how businesses respond.
Lower tariffs in China could boost the competitiveness of consumer goods, medical equipment, and agricultural goods for American exporters. Lower tariffs on some Chinese goods could lower import costs for U.S. importers. Whether consumers ultimately see lower prices will depend on how much of the savings businesses pass on.
Trade truce extended
The announcement of the tariffs is also connected to a larger trade truce between the United States and China. China said that the truce would last until January 10 so that both sides could work on unresolved trade issues.
The latest announcement therefore represents a limited easing of trade tensions rather than a final settlement.
For businesses and investors, the next important development will be the implementation of the tariff changes and negotiations over the products and sectors that remain outside the agreement.
Bottom line
The new U.S.-China arrangement covers around $60 billion worth of goods and gives businesses on both sides a potential reduction in tariff costs. However, the agreement is limited to selected products and leaves major strategic sectors such as semiconductors, EVs and batteries outside the deal.
The real impact will become clearer once both countries announce the final tariff rates and implementation dates.
Written by: Aman Gautam
Sources: Associated Press, Reuters, Washington Post.
Editor's Note: This article is based on information that was available at the time of publication and may be revised as additional information becomes available.