U.S., China to lower tariffs on $60 billion of goods. Here's what qualifies
BEIJING — The U.S. and China are planning to reduce tariffs on $30 billion worth of goods from each country, according to government announcements from both sides Monday.
The detailed lists includes mostly imports of toys, sports equipment and Christmas decorations by the U.S., while American agricultural products accounted for much of the far longer list of imports by China.
Washington has sought to reduce its record trade deficit with Beijing, as the Asian country exports far more to the U.S. than it imports. U.S. goods trade deficit with China was more than $202 billion last year.
"If we see the tariff cuts actually implemented before the holiday season, it could provide a welcome boost to U.S. consumption and to retailers," said Jacob Cooke, CEO at WPIC.
Cooke, whose company primarily helps U.S. brands sell in China, said that Beijing's import list includes fast-growing categories such as hair care and packaged pet food, where Chinese brands are highly competitive against U.S. offerings. "Every percentage point counts for price competitiveness and preserving margin."
However, it was not immediately clear when lower tariffs would take effect, and by how much the duties would go down. The U.S. and China last year slapped import tariffs effectively of over 40% and more than 30%, respectively, on each other.
The two countries limited further tariff increases after a one-year truce reached last fall. Last week, U.S. Treasury Secretary Scott Bessent said negotiators agreed to extend that truce to January.
Monday's announcement followed U.S. President Donald Trump's summit with Chinese President Xi Jinping in Washington, D.C., last week. The two sides said the highly anticipated U.S.-China "Board of Trade" would consist of officials from both governments, and would meet at least once a quarter, with the top officials meeting "whenever necessary."
Lower tariffs could substantially boost trade, especially for highly competitive Chinese companies. Home goods seller Ryan Zhao, director of Jiangsu Green Willow Textile, expects sales in the second half of the year to grow by 30% from a year ago if tariff cuts are implemented.
—CNBC's Matthew Tan contributed to this report.
