US and China release reciprocal $30 billion product lists for tariff
cuts after Trump-Xi meeting
[September 28, 2026] By
CHAN HO-HIM and KANIS LEUNG
HONG KONG (AP) — The United States and China released Monday reciprocal
lists of products worth about $30 billion each that will see tariff
cuts, in a deal expected to boost bilateral trade.
The details came days after Chinese President Xi Jinping met with
President Donald Trump in Washington in his first state visit to the
U.S. since 2015. The U.S. had already reduced tariffs against China
after Trump’s tariffs reached as high as 145% at one point last year, as
tensions between the two countries eased.
China’s commerce ministry said in a statement the agreement will help
strengthen trade cooperation.
Most country-specific tariffs practically eradicated
The lists included 1,619 items of U.S. goods entering China, ranging
from agricultural commodities, personal care products to timber and
medical equipment. Coal from the U.S. will also be included.
For Chinese goods exported to the U.S., 77 categories were covered,
including fireworks, tableware, glass and wooden Christmas ornaments and
soccer balls.
Tariff rates on over 90% of the products would be subject to
“most-favored-nation” levels, the Chinese commerce ministry said,
meaning that country-specific tariffs will effectively be eliminated.
U.S. Trade Representative Jamieson Greer said in a separate statement
the product lists focused on “nonsensitive goods on each side that could
benefit from more favorable tariff treatment.” The deal could help
secure market access for U.S. farmers, manufacturers, businesses and
workers, while benefiting American consumers with imports from China
including household goods and toys, Greer said.
Both countries said they agreed the list may be adjusted later as
needed, but amendments were likely to be no more than on an annual
basis.
The Chinese commerce ministry said the two countries agreed to further
cooperate in the agricultural sector, forming a group under the Board of
Trade established in May to optimize bilateral trade.
Sectors of strategic importance for both countries, such as chips,
electric vehicles and batteries, were not covered under the agreement.
A potential boost to US-China bilateral trade
“This is a positive outcome for these affected products compared to a
smaller tariff cut, and could lead to a more significant boost to
bilateral trade,” said Lynn Song, chief economist for Greater China at
ING Bank.
The lowered tariffs could be a win for U.S. consumer brands, added Jacob
Cooke, CEO of WPIC Marketing + Technologies based in Beijing, as some of
the products covered by China's list of U.S. imports included
fast-growing categories like hair care, personal care products and
infant formula.
The U.S. list for Chinese imports focused more on consumer goods, which
could help lower U.S. inflation while also allowing Chinese firms to
export more of their overcapacity, said Gary Ng, a senior economist at
French bank Natixis.
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A vendor waits for customers near Santa costumes for sale at the
Yiwu International Trade Market in Yiwu, eastern China's Zhejiang
province on April 10, 2025. (AP Photo/Ng Han Guan, File)
 Some experts said, however, the
economic impact at $30 billion each way may be limited overall.
U.S. exports to China were roughly $68 billion through the first
seven months of this year, while Chinese exports to the U.S. were at
around $270 billion for the first eight months, said Prashant
Bhayani, chief investment officer for Asia at BNP Paribas Wealth
Management.
A $30 billion deal each way will be “more meaningful” for U.S.
exports to China in terms of percentage share, he said.
China's trade surplus expected to remain elevated
While the deal did not cover sensitive strategic goods, analysts
believe U.S.-China trade will likely continue to recover for the
rest of the year after steep U.S. tariffs on Chinese products last
year hit bilateral trade.
The U.S. and China last week also reached a two-month extension of
the broader trade truce that was set to expire Nov. 10 to January.
China’s trade surplus, which reached a record $1.2 trillion last
year, will likely remain elevated. By August, it stood at about $800
billion, putting this year’s surplus “on pace to exceed the 2025
record,” according to Ecaterina Bigos, a senior market strategist
with BNP Paribas Asset Management.
The U.S. is also investigating China among 16 trading partners in
its Section 301 probe on excess industrial capacity and could impose
additional tariffs on China when the investigation concludes.
However, with more meetings set between Trump and Xi, including at
the Asia-Pacific Economic Cooperation summit in Shenzhen in November
and at the Group of 20 summit in Florida in December, Song at ING
said he would not expect a major flare-up of trade tensions before
year-end.
Exporters welcome the tariff deal
Some Chinese exporters welcomed the tariff deal announcements.
“This is positive news,” said Richard Chan of Golden Arts Gifts &
Decor, which manufactures Christmas decorations in southern China
and supplies to countries including the U.S. “The economy in both
the U.S. and China is not really good, and the two sides should help
each other more.”
However, because most of this year’s Christmas goods are already
being shipped ahead of the peak holiday season, the tariff
reductions may have limited effect for them at least for now.
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