SAN FRANCISCO — The White House released Sunday (Monday in Manila) lists of products that could benefit from lower tariffs under an arrangement with China affecting $30 billion in goods in each direction, without specifying the rates or timetable.
US President Donald Trump and his Chinese counterpart Xi Jinping concluded a summit on Friday (Saturday in Manila), with their talks covering matters including trade.
The United States and China will review the lists “with a view toward providing reduced tariff treatment to those goods in a reciprocal manner,” according to the terms released by the White House.
The US could reduce tariffs on 77 categories of Chinese goods, including fireworks, Christmas ornaments, household goods and sports equipment.
China’s import list includes more than 1,600 categories of American goods, including meats — beef, pork, poultry and seafood — grains, dairy, whiskey, coal and timber.
The White House announced on Friday an agreement on “recommendations” for more favorable tariff treatment for these “non-sensitive goods,” following Xi’s visit to Washington.
Beijing confirmed the agreement on Saturday.
China also agreed to import at least 10 million metric tons of coal from the US in 2027 and 2028, the White House said.
Xi and Trump agreed to a trade truce last year during a meeting in South Korea, after a tit-for-tat fight that saw tariffs soar over 100 percent at one point.
The pact was originally due to expire in November but both sides have agreed to extend it until Jan. 10, according to US Treasury Secretary Scott Bessent.
Soybean excluded
However, US soybeans still face an additional tariff of 10 percent, which traders have warned is too high for private crushers to absorb, even as Chinese state buyers have stepped up purchases.
“Despite the soybean being a non-sensitive item in trade, the political significance of China’s soybean purchase is enormous and carries major political implications,” said Feng Chucheng, founder and partner at Hutong Research.
“Hence a separate track on soybean purchase outside the Board of Trade. This also gives Beijing a leverage to restrain US actions, especially ahead of the midterm elections.”
Chinese state-run agricultural companies Sinograin and Cofco have bought more than 12 million metric tons of US soybeans, nearly half the 25 million the White House has said Beijing committed to buying annually through 2028.
Trade in the agricultural and related products on Monday’s list stood at about $17 billion in 2024, roughly matching China’s reported purchase commitment, excluding soybeans, according to Reuters calculations.
In May, the White House said Beijing had agreed to buy that volume annually through 2028, but China has yet to confirm any target for such purchases.
State-run companies will continue to buy US soybeans and the tariff cuts on other goods will help China meet the $17 billion commitment, said a trader based in Asia with an international company that sells soybeans to China who spoke on condition of anonymity.
The trader added US soybeans are not very competitive on price even if the tariffs were lowered.
AFP/REUTERS
