US and China agree to cut tariffs on $60 billion worth of goods, from coal to toys

London (CNN) — The United States and China have agreed to slash tariffs on $60 billion worth of goods, deepening efforts to stabilize a frequently testy relationship.

The tariff relief extends to an array of products, from US coal and agricultural products to made-in-China toys, car seats and holiday decorations.

The announcement from the White House late Sunday followed a highly anticipated meeting between US President Donald Trump and Chinese leader Xi Jinping in Washington last week.

The White House said that under a so-called “30-for-30” framework, each country would be allowed to import “non-sensitive” goods worth $30 billion from the other at reduced tariff rates.

The more favorable tariff treatment followed recommendations from the US-China Board of Trade and would improve market access for about 30% of US exports to China, US trade representative Jamieson Greer said in a statement Sunday.

“The Trump Administration will continue to pursue fair, balanced, and reciprocal trade with China by ensuring compliance with commitments on agricultural and energy purchases, pursuing balanced trade in non-sensitive goods, and securing market access for American farmers, manufacturers, businesses, and workers,” he added.

The Chinese list of US products that will be subject to lower tariffs covers 1,619 items, including corn, wheat, frozen meat, seafood, wood products, cosmetics and medical devices, according to a list published by the White House. US soybeans were not included, a blow to struggling American farmers who have been collateral damage from a years-long tit-for-tat trade war between the two countries.

The White House also said that China would import at least 10 million metric tons of coal from the United States in 2027 and again in 2028. Previous commitments to import certain quantities of goods, such as agricultural products, have not always been met in full, however.

The US list of Chinese imports covers 77 items, including toys, tableware, kitchen accessories, curtains, electric shavers and inflatable balls.

The Chinese commerce ministry said the agreement would “further stabilize” China-US economic and trade relations and “create favorable conditions” for the export of relevant Chinese products to the United States.

US trade deficit with China shrinking

The announcement comes after the US and China agreed ahead of Xi’s visit to press pause on escalating tariff measures until January 10. The trade truce – which sets tariff levels at 30% on Chinese goods and 10% on US goods – has been extended multiple times since May 2025, when the two countries met in Geneva for negotiations.

The goods listed Sunday, however, will likely be carved out of future tariff measures.

Trump has used tariffs to narrow the US trade deficit with China – or the difference between what America exports to China and what it imports from China – prompting Chinese exporters to send more goods elsewhere, including to Europe.

In an interview with CNBC on Friday, Greer said the deficit on goods trade with China had fallen 40% since Trump took office and was on track to reach $140 billion this year. Data from the US Census Bureau showed the deficit amounted to around $295 billion in 2024.

Beyond trade, the two countries also agreed to establish a bilateral communication channel to discuss any artificial intelligence-related “incidents,” according to the White House.

The White House said Xi and Trump agreed to use the term “super intelligence” rather than “artificial intelligence” to describe the emerging technology, and that the two sides had established the. U.S.-China Super Intelligence Dialogue to exchange views on risks and benefits related to AI. The next exchange will occur by November 2026.

– CNN’s Stephanie Yang, Issy Ronald and Sylvie Zhang contributed reporting.

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