US and China agree to reduce tariffs on products worth 60 billion dollars

The United States and China have agreed to reduce tariffs on goods worth about $30 billion each. In this way, there is a possibility of reducing the tariff on products worth about 60 billion dollars in total. This development took place after US President Donald Trump and Chinese President Xi Jinping met in Washington last week.
The arrangement, dubbed the 30 for 30 Framework, will be administered by the newly formed US-China Board of Trade. Both countries have approved lists of products of near-equivalent value, which can be considered for lower tariffs, but this will depend on the domestic laws and procedures of the two countries.
Chinese products targeted for lower tariffs under the new "30 by 30" framework include fireworks, cookware, torches, baseballs and softballs, and fishing hooks, according to a list of imported goods released by the White House. If the lower tariffs were enacted last year, about 10 percent of U.S. imports from China would be affected, according to U.S. Census Bureau data.
The framework is an attempt by Washington and Beijing to identify specific categories of goods on which tariffs can be reduced on a mutual basis, while maintaining the overall structure of the trade relationship between the two countries.
The Board of Trade will include officials from the US and Chinese governments and will be overseen by senior officials from both governments.
The US side will be led by Treasury Secretary Scott Besant and US Trade Representative Jamieson Grier, while China will be represented by Vice Premier He Lifeng.
Deputy officials working under the two heads will prepare proposals which will be presented to senior officials for consideration. Senior officials are expected to meet at least once every quarter, while staff-level meetings will be held regularly. The board's stated objective is to improve bilateral trade and consider further arrangements that could increase trade between the world's two largest economies. The agreement covers $30 billion in imports from both sides. It has identified 77 Chinese products and more than 1,600 US products for consideration for more favorable tariffs.
Chinese products on the list include microwave ovens, fishing hooks, artificial flowers and weighing scales. American products identified for lower tariffs include poultry, dairy products, noodles, eggs, peanuts, canned tomatoes, thoroughbred breeding horses and silk. Greer said in a statement that the Trump administration will continue to pursue fair, balanced and reciprocal trade with China, including ensuring compliance with agricultural and energy procurement commitments, promoting balanced trade in non-sensitive goods and ensuring market access for US farmers, manufacturers, businesses and workers. The list also includes certain exemptions and technical tariff classifications under the US Harmonized Tariff Schedule (HTSUS). Products marked in the Ex-Out column will be subject to the product-specific specification given in the framework. However, the framework does not immediately implement tariff reductions even if the product lists are agreed upon.
According to the agreed conditions, future tariff reduction will be determined and implemented through the domestic legal procedures of both countries.
Both governments will monitor trade in listed products and may recommend changes to the lists. However, as per the framework, the parties do not intend to make such changes more than once a year.
The two countries may also consider extending this arrangement to more products in the future. After that, the agricultural sector and other trade matters may also be considered.
The Board of Trade will also have the power to consider wider arrangements to improve bilateral trade.
The proposed mechanism also includes the possibility of establishing special working groups, including a possible agricultural working group. Deputy officials may also raise other issues affecting US-China trade and make proposals to senior officials. Senior officials will meet as needed to consider proposals made by their deputies.
Rather than a single comprehensive tariff arrangement, the 30 for 30 framework focuses on specific trade goods. The value of the two lists is calculated based on bilateral trade data for the calendar year 2024. Both countries say the lists are designed to have roughly the same value, but future tariff actions by each country will be subject to its own legal and administrative procedures.
As such, the agreements provide a framework for product-specific negotiations as well as an institutional mechanism for Washington and Beijing to continue negotiations on tariffs and other trade arrangements.
Further decisions on tariff rates, implementation and any expansion of the lists will depend on the future steps taken by both governments.
UNI. A.