China and the United States have discussed a proposed reciprocal tariff-reduction arrangement covering around USD 30 billion worth of goods from each country, ahead of an expected meeting between US President Donald Trump and Chinese President Xi Jinping in Shenzhen next week.
The discussions took place during the first meeting of the bilateral Trade Council on Friday, November 13, held through a video conference under the two countries’ economic and trade consultation mechanism.
China’s Commerce Ministry said on Saturday that both sides held “candid, in-depth and constructive exchanges” on implementing the outcomes of previous trade negotiations. The agenda included tariffs, agricultural trade and other economic issues of mutual concern.
The proposed arrangement would involve reciprocal tariff reductions on approximately USD 30 billion worth of imports from each country, creating a combined package worth around USD 60 billion. However, neither side announced a final agreement following Friday’s discussions. Reuters reported that the plan remains unfinalised.
The framework follows a September meeting between Trump and Xi in Washington, where the two countries agreed to work towards reciprocal tariff reductions on selected products. A White House document published in September outlined the proposed mechanism, under which both sides would identify goods worth roughly USD 30 billion for reduced tariff treatment.
Agricultural trade remains a key part of the negotiations. The proposed package includes approximately USD 17 billion worth of US agricultural products imported by China in 2024, according to Reuters.
China’s purchases of American agricultural goods have remained a point of contention. Beijing has urged Washington to implement the proposed tariff reductions, describing them as a condition for expanding purchases of US farm products.
A Reuters analysis of customs data found that Chinese purchases of US agricultural products other than soybeans were on track to reach a seven-year low this year, despite a commitment to buy USD 17 billion worth of American agricultural goods annually through 2028.
The latest discussions come ahead of the expected Trump-Xi meeting on Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum in Shenzhen.
The bilateral Trade Council is expected to continue addressing trade concerns and exploring areas of cooperation as the two economies seek to manage ongoing commercial tensions.
