The alliance tightening? US and China lower tariffs by $60 billion

The US and China have reached an agreement to reduce tariffs by approximately $60 billion, as part of the "30 for 30" initiative aimed at stabilizing trade relations between the two superpowers. The agreement was announced by the White House following a meeting between Trump and Xi Jinping. The relief will apply to products such as corn, wheat, meat, seafood, medical equipment, and toys, but soybeans remain excluded from the deal.

The US and China have reached an agreement to reduce tariffs by approximately $60 billion, a move aimed at stabilizing the strained trade relations between the two superpowers. The agreement was announced today (Sunday) by the White House, following a meeting of leaders last week in Washington. Under the agreement, known as "30 for 30," each country will allow imports of "non-sensitive" goods worth up to $30 billion from the other country at reduced tariff rates. The relief will apply to a range of American and Chinese products, including corn, wheat, meat, seafood, wood products, medical equipment, toys, and consumer goods. US Trade Representative Jamieson Greer said the agreement will improve access to the Chinese market for about 30% of American exports to the country. However, soybeans—a key product for American farmers—remain outside the agreement. China has also committed to importing at least 10 million tons of coal from the US in 2027 and 2028. Alongside the economic agreements, Washington and Beijing have decided to establish a joint communication channel to address developments in the field of artificial intelligence and the associated risks. The agreement comes after the US and China agreed to suspend the escalation of the tariff war until January 10, and marks another attempt by the world's two largest economies to curb the economic conflict between them.