China, US slash tariffs on USD 30 billion on imports: Chinese Commerce Ministry

China and the US have agreed on 10 outcomes from their latest economic and trade talks, including reciprocal tariff reductions on USD 30 billion worth of imports and the arrangement for the artificial intelligence (AI) dialogue, the Chinese Ministry of Commerce (MOFCOM) said on Monday.

The economic and trade teams of the two sides held consultations in New York and Washington from September 20 to 23, ahead of the summit meeting between President Xi Jinping and his US counterpart Donald Trump.

Significantly, Trump was silent about the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 that authorises him to impose sanctions on Russia and steep tariffs on its trading partners in oil and gas, including India and China.

China has rejected US attempts to impose tariffs on its purchases of Russian oil and gas, saying normal trade cooperation between countries should not be subject to third-party interference.

The two sides did not mention thornier issues such as export controls on rare earths in their latest statements.

"China’s dominance in the mining and processing of key rare earths and other critical minerals is the strongest card it has in its negotiations with the US,” Alfredo Montufar-Helu, the China-based managing director at Ankura Consulting, told Hong Kong-based South China Morning Post.

China accounts for about 70 per cent of global rare earth mining and nearly 90 per cent of their processing. The minerals are critical for manufacturing electronics, automobiles, wind energy, and defence equipment and a host of modern gadgets.

Reciprocal tariff reductions cover $30 billion each

China and the US have agreed to reduce tariffs on about USD 30 billion worth of imports from each other on a reciprocal basis, with tariffs on about 90 per cent of the products on each side to be lowered to most-favoured-nation (MFN) rates, according to the MOFCOM.

Under the agreement, the US will reduce tariffs on about USD 30 billion worth of imports from China, including toys, home appliances, baby products, kitchen and bathroom products.

China will reduce tariffs on about USD 30 billion worth of imports from the US, including agricultural products, personal care products, medical devices and coal, official media here reported, citing MOFCOM.

The two sides agreed to jointly release their respective lists of products subject to the tariff reductions. The reductions will take effect simultaneously after both sides complete their respective domestic legal procedures, state-run Global Times reported, quoting MOFCOM.

The arrangement will help stabilise China-US trade and create more favourable conditions for exports of relevant Chinese products to the US, while also helping meet domestic market demand and strengthen bilateral trade cooperation in areas including agricultural products, energy, manufactured goods and consumer products, MOFCOM said.

Observers said the tariff reductions were modest considering the US-China trade amounted to about USD 414.7 billion in 2025, with Chinese exports amounting to over USD 308 billion and US exports totalling around USD 106.3 billion.

As part of the positive outcomes, China and the US have agreed to establish a China-US Board of Trade under the bilateral economic and trade consultation mechanism, with the main task of improving two-way trade, the MOFCOM said.

The economic and trade teams from both sides have reached a consensus regarding the board's mandate, structure, responsibilities, and consultation arrangements; details will be released subsequently, it said.

Notably, tariffs on China's coal imports from the US will be included in the "USD 30 billion for USD 30 billion" reciprocal tariff reduction framework, as part of the consensus reached by the Chinese and US economic and trade teams. This will facilitate China's coal imports from the US in both 2027 and 2028.

The MOFCOM noted that coal imports from the US would be a useful supplement to China's domestic coal market while bringing stable revenue and jobs to the US coal industry. They would also help stabilise and expand bilateral trade, the MOFCOM official said.

"It is hoped that, through joint efforts, China and the US will continue to deepen cooperation in the coal sector and achieve mutual benefits," the official said.

Agricultural products are also included in the reciprocal tariff reduction framework as agreed in principle in the bilateral economic and trade consultation in May.

Against this backdrop, the two sides have agreed in this round of talks to establish an agricultural working group under the Board of Trade, with relevant regulatory agencies from both countries participating, it said.

The board is also expected to provide an important platform and institutional guarantee for "lengthening the list of cooperation and shortening the list of problems in the economic and trade field," and to help keep China-US economic and trade relations on a stable, positive track, the MOFCOM said.

AI dialogue and trade truce extension

Another highlight of the outcomes is the creation of the AI dialogue. The two sides agreed that under the China-US economic and trade consultation mechanism, they would establish an AI dialogue. They have held the first session, exchanging views on the risks and benefits of AI, according to the MOFCOM.

China and the US have agreed to convene the next AI dialogue before the end of November, and to set up a communication channel for AI-related incidents, it added.

China and the US have also agreed to extend the Kuala Lumpur trade arrangement, under which certain tariff and non-tariff measures were suspended through November 10, 2026, to January 10, 2027, while continuing active discussions aimed at reaching a solution agreed by both sides.

The ministry noted that the arrangement provides both sides with room to take stock of and assess its implementation, and to consider how to advance China-US economic and trade relations in the next stage.

The combination of a time-bound extension and continued active discussions would also provide a relatively stable and predictable policy environment for cooperation between Chinese and US businesses, it said.

The MOFCOM said it believes the two sides will continue their efforts and, through high-level economic and trade interactions before the end of the year, seek a positive solution on a further extension.

The other outcomes include exchanging views on increasing direct passenger flights and an agreement to maintain communication on adding more China-US flights and related matters.

In addition, the MOFCOM said China will review and approve applications by financial services institutions from various countries, including US-funded institutions, to conduct business and establish branches in China.

China hopes that the US will provide a fair, transparent, and stable policy environment for Chinese-funded financial institutions, an official of the MOFCOM said.

Previous agreements and wider cooperation

During the consultations, China and the US also reaffirmed and renewed their commitment to continuing to implement the consensus reached in previous rounds of economic and trade consultations.

The MOFCOM said this would "create favourable conditions and a stable environment for bilateral economic and trade cooperation, while also contributing to global economic development."

In their summit talks on Sept 24-25 in Washington, Trump and Xi acknowledged the positive role of the China-US economic and trade consultation mechanism, and recognised the outcomes achieved by their respective economic and trade teams.

They instructed that those outcomes be implemented, the Global Times reported.

On the Fentanyl drug crisis gripping the US, the two sides have worked closely to jointly crack multiple cases involving new psychoactive substances and precursor chemicals, and arrest dozens of suspects in both countries, it said.

In addition to the eight outcomes, the Chinese and US militaries agreed to sign a memorandum of understanding as soon as possible on strengthening crisis communication and prevention, the Global Times reported.