Washington and Beijing Take a Step Toward Lower Tariffs

The main topics of discussion included trade and economic relations, artificial intelligence (AI), Taiwan, as well as the situation in the Middle East, the Ukraine crisis, and the Korean Peninsula. The two sides agreed to continue their dialogue on the risks and opportunities associated with AI and to establish a dedicated communication channel for discussing AI-related incidents.

A tangible outcome of the US-China talks was an agreement to partially reduce trade barriers. The two sides agreed on lists of goods worth approximately $30 billion in each direction that could benefit from more favorable tariff treatment. The mechanism, known as “30 for 30,” operates within the framework of the US-China Trade Council established in May. The US list includes agricultural products, fish and seafood, timber, cosmetics, medical equipment, and coal. The Chinese side proposed reducing tariffs on a range of consumer goods from China, including toys, household appliances, children's products, and household goods. According to the Office of the United States Trade Representative, the new mechanism could potentially cover approximately 30% of US exports to China. However, the agreements currently represent mutually agreed recommendations, and the actual tariff reductions must undergo domestic legal procedures in both countries. (Sources: USTR, September 27, 2026; Ministry of Commerce of the People's Republic of China, September 28, 2026; White House, September 25, 2026).

At the same time, the United States and China extended their existing trade truce for another two months, until January 10, 2027. The two sides plan to use this additional time for further negotiations on market access, agricultural trade, and investment. (Source: Reuters, September 28, 2026).

The most sensitive sectors remain outside the scope of the agreement. Semiconductors, electric vehicles, and several other strategic products were not included in the lists. US soybeans, which have traditionally accounted for a significant share of American exports to China, were also excluded from the initial list. This indicates that the agreement currently focuses primarily on less contentious categories of goods, where it is easier for both sides to reach mutually acceptable concessions. Nevertheless, the mechanism itself allows for the lists to be expanded in the future. (Sources: Reuters, September 28, 2026; Associated Press, September 28, 2026).

It should be noted that the scale of the first phase is relatively modest compared with the overall trade volume between the world's two largest economies. Moreover, the agreed lists do not automatically translate into tariff reductions. What appears more significant is the change in the nature of the negotiations themselves. After a prolonged period of mutual increases in trade restrictions, the two sides have established a permanent mechanism that allows them to gradually expand the range of goods eligible for more favorable treatment. If implemented successfully, the mechanism will provide companies with more predictable trading conditions and enable some importers to reduce their costs. The economic impact of the first phase is likely to remain moderate, as the existing arrangements for the most sensitive industries remain unchanged. Further progress will depend on negotiations concerning technology, agriculture, and market access. Developments in these areas will determine whether the September agreement marks the beginning of a more sustainable normalization of US-China trade relations or remains a limited compromise covering a relatively narrow range of goods.

Author: Doctor of Economics, Professor at the Department of World Economy and International Finance, Financial University under the Government of the Russian Federation, Rinas Vasimovich Kashbraziev.