The United States and China have agreed to pursue lower tariffs on $30 billion worth of non-sensitive goods traded between the two countries, in a move aimed at improving market access and easing trade barriers between the world’s two largest economies.
The arrangement was announced following President Donald Trump’s meeting with Chinese President Xi Jinping in Washington and is being implemented through the newly established U.S.-China Board of Trade, which was created to manage trade in products considered outside sensitive national security sectors.
Under the framework, $30 billion worth of goods from each country has been recommended for potentially more favourable tariff treatment, creating a combined trade category worth about $60 billion.
The recommendation covers products considered non-sensitive and is intended to expand bilateral trade while maintaining existing restrictions on strategically important goods.
According to U.S. Trade Representative Jamieson Greer, who confirmed the development yesterday, the Board of Trade was established during Trump’s May visit to Beijing.
Following Xi’s subsequent visit to Washington, both governments announced the next stage of the framework, including recommendations on products that could qualify for improved tariff treatment.
Greer said the recommendations cover a range of products, including agricultural goods and medical devices, while Chinese exports that could receive favourable treatment in the U.S. market include household products, toys and other consumer goods.
“The United States and China, under the auspices of the new Board of Trade, have recommended $30 billion of trade in non-sensitive goods on each side that could benefit from more favorable tariff treatment in the future,” Greer said.
According to the U.S. Trade Representative, the arrangement could improve market access for about 30 per cent of U.S. exports to China, particularly agricultural commodities and medical equipment.
Greer added that the Trump administration would continue to pursue what it described as “fair, balanced, and reciprocal trade,” including compliance with commitments on agricultural and energy purchases, balanced trade in non-sensitive goods and improved access to the Chinese market for American businesses, manufacturers, farmers and workers.