US and China set up framework for possible $60bn tariff reductions

The United States and China have agreed to examine tariff reductions covering about $30 billion of goods from each country, establishing a possible $60 billion framework for more targeted trade concessions. The arrangement follows last week’s meeting between US President Donald Trump and Chinese President Xi Jinping, according to the Asia News Network.

Known as the “30-for-30” framework, the plan creates a new US-China Board of Trade. Its members will be government officials from both countries, with senior representatives responsible for reviewing proposals and deciding how discussions should proceed.

The agreement does not immediately lower any tariffs. Instead, it establishes product lists and a process through which future reductions may be negotiated and introduced under the separate legal and administrative systems of Washington and Beijing.

A new channel for tariff talks

The US delegation will be headed by Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer. China’s lead representative will be Vice Premier He Lifeng.

Officials working beneath those senior representatives will prepare proposals for consideration. The deputies are expected to meet at least four times a year, while technical and staff-level discussions will continue more frequently. The senior officials can meet whenever they need to assess recommendations or consider unresolved issues.

The board is intended to provide a continuing structure for trade negotiations rather than a one-time exchange of tariff concessions. Its remit includes efforts to improve commercial ties and the possibility of developing further arrangements between the two economies.

The framework also allows the creation of specialist working groups. Agriculture is identified as one possible area, although the deputies may bring other US-China trade concerns to the board and refer them to the senior officials.

The two governments can review the covered products and suggest changes. The terms of the arrangement say they do not expect to revise the lists more than once a year, while leaving open the possibility of adding other goods later.

What the lists contain

The US list covers 77 tariff classifications or product categories involving Chinese consumer goods. Items identified for possible more favourable treatment include microwave ovens, fish hooks, artificial flowers and weighing scales.

The Chinese list contains more than 1,600 US products. The goods named include poultry, dairy products, noodles, eggs, peanuts, canned tomatoes, pure-bred breeding horses and silk.

The lists are intended to have comparable value, with the calculation based on trade between the countries during calendar year 2024. The approach is therefore different from a uniform reduction applied across all imports. It concentrates negotiations on specified goods and uses bilateral trade data to balance the two sides’ proposed coverage.

Greer said the arrangement could improve access for goods representing around 30 percent of US exports to China and provide benefits for American consumers. He also linked the framework to US aims involving agricultural and energy purchases, trade in non-sensitive products and improved opportunities for US farmers, manufacturers, companies and workers.

The product schedules include detailed tariff classifications under the US Harmonized Tariff Schedule. Some entries contain exclusions, meaning that only products matching the descriptions set out in the framework would qualify for any future treatment. Those technical definitions will matter when the governments decide whether particular shipments fall within the agreed categories.

Implementation remains unresolved

The central limitation is that the framework sets out a negotiating mechanism, not an operative tariff agreement. Any actual reduction must pass through the domestic procedures of the country making the change. The final rates, timing and scope of implementation have yet to be determined.

The board will monitor trade in the listed goods as the process develops. Its officials may recommend amendments, but the framework limits how often the product schedules are expected to be altered. Both sides can also discuss expanding the arrangement beyond the initial lists.

That combination of specific products and a permanent official channel gives the agreement two functions. It identifies areas where tariff relief might eventually be possible, while also creating a forum for disputes and wider commercial proposals.

The outcome will depend on subsequent decisions by the US and Chinese governments. Until those decisions are taken through their respective legal systems, the 30-for-30 plan remains a framework for negotiations rather than a completed package of tariff cuts.