China and the United States reached a consensus on reciprocal tax reductions of US$30 billion and established a trade council to promote economic and trade cooperation.

In May 2026, the heads of state of China and the United States met in Beijing and agreed that the two sides would establish an intergovernmental trade council. From September 20th to 23rd, China and the United States held the eighth round of economic and trade consultations in New York and Washington, USA, and reached consensus on the working procedures of the China-U.S. Trade Council, the "30 billion to 30 billion" reciprocal tax reduction framework responsibilities document, and the list of tax reduction products.

According to the work regulations, the Trade Council's task is to optimize bilateral trade and will discuss arrangements for optimizing bilateral trade and issues affecting trade. It is believed that the Trade Council will provide an important platform and institutional guarantee for China and the United States to continuously expand the list of cooperation and shorten the list of problems in the economic and trade field, and help China and the United States to construct a constructive strategic and stable relationship.

China and the United States reached a consensus on a $30 billion reciprocal tax reduction framework under the framework of the Trade Council. The two sides agreed to provide tariff reduction treatment on a reciprocal basis for their respective imported products with a scale of approximately US$30 billion (referring to the bilateral trade volume in 2024) on the basis of complying with their respective domestic laws and procedures. More than 90% of these products will be exempted from all tariffs imposed on each other and enjoy most-favored-nation tariff treatment.

Based on their respective market needs and industrial interests, both parties have agreed on a list of products with reciprocal tax reductions. The United States will reduce tariffs on approximately US$30 billion in imported goods from China, including toys, home appliances, baby products, kitchen and bathroom supplies, and holiday gifts. China will reduce tariffs on approximately US$30 billion of imported goods from the United States, including agricultural products, personal care products, medical equipment, and coal. Both parties agreed to jointly publish their respective lists of tax-reduced products. In the future, both parties will implement tax reductions simultaneously after fulfilling their respective domestic legal procedures. This arrangement will help stabilize Sino-US trade and create better conditions for the export of Chinese-related products to the United States. It will also help meet domestic market demand and strengthen trade cooperation between the two sides in agricultural products, energy, manufactured products, consumer goods and other fields.

The two sides agreed to establish an agricultural working group under the Trade Council to discuss relevant issues including supervision and market access, address trade concerns, and expand practical cooperation in the agricultural field. The agricultural working group plans to hold its first meeting before the end of 2026. China will continue to push the United States to resolve China's agricultural concerns through working group meetings.