US, China release $60B product list for tariff cuts

The United States and China on Monday released reciprocal lists of nonsensitive products worth about $30 billion each that will see tariff cuts, from American hair products to Chinese toys, in a deal expected to help bolster bilateral trade.

The details came days after Chinese President Xi Jinping met with U.S. President Donald Trump in Washington in his first state visit to the U.S. since 2015. The U.S. had already reduced tariffs against China after Trump's tariffs reached as high as 145% at one point last year, as tensions between the two countries eased.

China's commerce ministry said in a statement the agreement will help strengthen trade cooperation.

The lists included 1,619 items of U.S. goods entering China, ranging from agricultural commodities, hair and personal care products to timber and medical equipment. Coal from the U.S. will also be included.

For Chinese goods exported to the U.S., 77 categories were covered, including fireworks, tableware, toys like dolls and puzzles, glass and wooden Christmas ornaments and soccer balls.

Tariff rates on over 90% of the products would be subject to "most-favored-nation" levels, the Chinese commerce ministry said, meaning that country-specific tariffs will effectively be eliminated.

Most-favored-nation rates are the standard tariffs applied under World Trade Organization rules, but they can differ from item to item and are often in the single digits.

U.S. Trade Representative Jamieson Greer said in a separate statement the product lists focused on "nonsensitive goods on each side that could benefit from more favorable tariff treatment." The deal could help secure market access for U.S. farmers, manufacturers, businesses and workers, while benefiting American consumers with imports from China including household goods and toys, Greer said.

Both countries said they agreed the list may be adjusted later as needed, but amendments were likely to be no more than on an annual basis.

The Chinese commerce ministry said the two countries agreed to further cooperate in the agricultural sector, forming a group under the Board of Trade established in May to optimize bilateral trade.

Sectors of strategic importance for both countries, such as chips, electric vehicles and batteries, were not covered under the agreement.