China and the United States have agreed to reduce tariffs on $60 billion worth of trade — one among several other commitments made following President Xi Jinping's state visit to America last week.
Under a new Board of Trade, the two nations recommended tariff reductions on $30 billion worth of "non-sensitive" goods on each side after Xi met with President Donald Trump, U.S. Trade Representative Jamieson Greer said in a statement. Although it was not immediately clear by how much tariffs on the select items will be reduced, Greer said the agreement will unlock "improved market access for about 30 percent of U.S. exports to China."
Greer added the move will benefit American consumers as the reductions affect household goods, toys and other products
the United States typically does not import from other countries. Because U.S.-based importers pay tariffs on Chinese goods when they enter the country (and may pass those costs on to consumers), reduced tariffs could eventually lead to lower prices on those select items. But lower consumer prices are rarely guaranteed. Elevated energy and transportation costs are still putting pressure on supply chains.
"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," Greer said.
An open line of communication on AI
Although it did not appear the two leaders came to any breakthrough agreement on the technology their countries are in a race to develop, the two nations committed to continuing discussions about the future of artificial intelligence.
Their meeting came at a time when some American industry leaders are sounding the alarm over the technology's potential risks that Trump has largely brushed aside.
After Trump told the United Nations General Assembly on Sept. 22 that he preferred to use the term "superintelligence" because the word "artificial" makes the technology sound "fake," the White House said in a statement that Xi agreed to use Trump's preferred phrase.
"The two countries established the U.S.-China Super Intelligence (SI) Dialogue to exchange views on risks and benefits related to SI," the White House said, adding the next exchange will take place before November.
What else did Trump and Xi discuss?
Investment, supply chains, coal and pandas.
The White House said a new Board of Investment will provide a channel for the two nations to discuss investment opportunities and roadblocks. It added that the two nations will also work to address supply chain shortages related to rare earth and other critical minerals.
The White House also announced that China agreed to import "at least" 10 million metric tons of coal from the United States in 2027 and in 2028.
Plus, Zoo Atlanta welcomed two new giant pandas from China over in what Xi called an "envoy of friendship" between the two nations.
"This historic visit enriched the constructive and stable China-US relationship, upheld the overall stability of bilateral ties, opened a new chapter in China-US relations, and will have a far-reaching impact on world peace and development," Chinese Foreign Minister Wang Yi said in a statement.
Which Chinese imports to the US are affected?
The White House released a list of 77 Chinese imports to the United States affected by the tariff reductions, which include several consumer products like small appliances, toys, holiday decorations and children's car seats.
Also impacted are:
- Fireworks
- Plates
- Tableware
- Curtains
- High chairs
- Pillows
- Playing cards
- Christmas ornaments
- Magic tricks
- Baseballs and other sporting equipment
- Fishing lines
- Artists’ brushes
Which American exports to China are affected?
The White House also released a list of 1,619 American exports to China that will also be impacted by the tariff reductions. It includes a range of agricultural goods, fish and seafood, logs and wood products, cosmetics and medical devices.
Also affected are:
- Donkeys
- Mules
- Horses
- Cattle
- Pigs
- Tuna
- Lobsters
- Butter
- Buttermilk
- Eggs
- Live flowers and plants
- Select frozen food items
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This article originally appeared on USA TODAY: US, China agree to tariff reductions on $60 billion worth of trade
