China-US Trade Deal: US-China Trade Deal: $30 Billion In Goods Get Tariff Relief; New AI Dialogue Agreed

China and the United States have agreed on a reciprocal tariff-reduction arrangement covering $30 billion worth of non-sensitive goods in each direction and have decided to create a new bilateral dialogue on artificial intelligence, after Chinese President Xi Jinping's three-day state visit to the US.

The agreements were part of an eight-point consensus reached during Xi's meetings with US President Donald Trump, according to China's state news agency Xinhua.

The White House separately confirmed that the two countries had reached consensus on more favourable tariff treatment for $30 billion of non-sensitive goods in each direction.

It should be noted that the $30 billion figure refers to the value of goods receiving more favourable tariff treatment, rather than a $30 billion reduction in tariff revenue.

China-US Tariff Deal Details

Under the newly operationalised US-China Board of Trade, the two countries agreed on recommendations covering $30 billion of non-sensitive goods in each direction.

According to the White House, products covered on the US export side include Agricultural products, Fish and seafood, Logs and wood products, and cosmetics and medical devices

For Chinese exports to the US, the list includes consumer products such as Small appliances, Toys, Holiday decorations, and children's car seats

US-China Trade Truce Extended

The two countries had already agreed to extend their trade truce by two months beyond its November 10 expiry date, providing additional time for negotiators to work on a broader economic agreement.

The latest agreement therefore does not represent the end of the wider US-China trade disputes. Instead, it adds another mechanism for managing tariffs and trade in selected non-sensitive products.

Reuters reported that the latest arrangement was carried out by the creation of a bilateral trade council and an agreement to extend the outcomes of earlier negotiations in Kuala Lumpur.

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