Washington/Beijing, September 28, 2026: The United States and China have agreed on a framework to reduce tariffs on approximately $30 billion worth of goods from each country, marking a new step in efforts to stabilize trade relations between the world’s two largest economies. China’s Commerce Ministry confirmed the arrangement on September 28.

Under the framework, around 90% of the products covered are expected to receive most-favoured-nation tariff treatment. The reductions are to be implemented simultaneously after both countries complete their respective domestic legal procedures.

What Products Are Included?

The US-bound list includes products such as household goods, toys, sporting equipment and other non-sensitive consumer items. The list of products heading toward China includes agricultural commodities, meat, seafood, dairy products, coal, timber and medical equipment.

However, US soybeans remain subject to an additional 10% Chinese tariff, despite China announcing reductions covering several other agricultural products.

New Trade Council

Washington and Beijing have also agreed to establish a bilateral trade council to facilitate trade and address economic issues between the two countries. An agricultural working group is expected to hold its first meeting before the end of 2026.

China also said the two countries reached an agreement in principle concerning financial services and agreed to establish an AI dialogue, including a communication channel for AI-related incidents.

Trade Truce Extended

The latest tariff framework comes alongside an extension of the existing US-China trade truce. China said the truce has been extended until January 10, 2027, providing additional time for both governments to evaluate existing commitments and continue negotiations.

The tariff measures follow last week’s meeting between US President Donald Trump and Chinese President Xi Jinping in Washington. Both governments are continuing negotiations on broader economic issues, while disagreements over areas such as technology and other strategic matters remain.

Why It Matters for Global Business

The US and China account for a substantial share of global trade, so changes in tariffs can affect manufacturers, exporters, retailers and consumers in many countries.

For businesses, lower tariffs on selected products could reduce some import costs and improve market access. However, the agreement covers only specified non-sensitive goods and does not resolve every dispute between Washington and Beijing.

The implementation of the tariff reductions and the progress of the newly established trade mechanisms will therefore be closely watched by global markets and businesses in the coming months.