China and the United States have come to an agreement to reduce tariffs on approximately $30 billion worth of goods from each side. This consensus was reached during their latest economic and trade consultations. The agreement stipulates that tariffs on about 90% of the products involved will be lowered to most-favoured-nation rates. The tariff reductions are set to be implemented simultaneously once both countries complete their respective domestic procedures.
In addition to the tariff reductions, China and the US have agreed to extend their current economic and trade arrangement. The extension will shift the expiration date from November 10, 2026, to January 10, 2027. Both nations are also committed to continuing negotiations to establish a longer-term agreement.
As part of strengthening bilateral trade relations, the two countries will establish a Board of Trade to facilitate ongoing discussions. An agricultural working group will be formed to specifically address market access and regulatory issues. Moreover, a bilateral investment board will be set up to explore investment opportunities, trade barriers, and policy transparency.
China and the US have also agreed to continue discussions on artificial intelligence. A new communication channel will be established for AI-related incidents, and another round of talks is scheduled to take place before the end of November.