China and US Weigh Equal Tariff Cuts on Energy and Farm Goods

China and the United States are discussing substantial reductions in tariffs on energy and agricultural products.

After US President Donald Trump visited China in May 2026, the two sides agreed in principle to discuss a reciprocal tariff-reduction framework under the Trade Council covering products of equal scale, each worth USD 30 billion or more. For products of mutual concern agreed by both sides, most-favoured-nation rates, or even lower, are planned. From June to July 2026, the United States began publicly soliciting views on which Chinese goods should be included in the tariff-cut list; China's Ministry of Commerce also said it was seeking opinions from companies, industry associations and local governments. The United States will apply most-favoured-nation rates to some Chinese goods.

Agriculture will play a central role in the September talks. When Chinese President Xi Jinping travels to the United States to meet Trump, representatives of COFCO, China's state-owned grain trader, plan to accompany him. A chief executive delegation of more than ten companies is also under consideration, though final arrangements have not been settled.

China-US trade already exceeded USD 400 billion in the first eight months of 2026, and the mutual tariff cuts cover only a small part of that. If an agreement is reached, it would sustain ongoing communication and help preserve the tariff truce reached in October 2025. Although differences over artificial intelligence, export controls and Taiwan are widening, Washington and Beijing are still able to keep bilateral relations on a relatively stable track. The trade committee announced after the May 2026 Xi-Trump meeting can deliver some practical results.

China is steadily implementing its commitment to buy 25 million tonnes of US soybeans a year through 2028. So far in 2026, China's soybean purchases have recently exceeded half of the annual target. The White House said in May 2026 that, beyond soybean purchases, Beijing also pledged to buy at least USD 17 billion of US agricultural products annually, with the 2026 purchase target calculated on a pro-rata basis.

Trump previously said Xi would visit the White House on 24 September, when a state dinner would also be held. China has not confirmed the specific date of Xi's trip.