China-US Trade Teams Discuss Tariff Council and $30 Billion Reciprocal Reduction

China's Ministry of Commerce stated that the trade teams of China and the United States are maintaining close communication on the structure, functions, and operational model of a trade council, and are exploring the advancement of a reciprocal tariff reduction framework of $30 billion each.

The $30 billion reciprocal tariff reduction is based on the principles of equality and mutual benefit, focusing on trade categories of common concern to both sides, and achieving a balance of interests through synchronized tariff reductions. The supporting mechanisms of a trade council and an investment council will establish a regularized platform for economic and trade dialogue between the two countries. This platform can expand cooperation space in policy communication and market opening, while also enabling timely consultations on differences and risk management, thereby providing institutional support for bilateral economic and trade relations.

The essence of China-US economic and trade relations is mutual benefit and win-win outcomes. From an annual trade volume of less than $2.5 billion at the start of diplomatic relations to the current deeply integrated industrial division of labor, the endogenous driving force of bilateral economic and trade cooperation has always been rooted in market demand, and the dividends of cooperation continue to benefit the peoples of both countries. In the first half of 2026, the total value of China-US goods trade reached RMB 2 trillion, with year-on-year growth of 13.7% in the second quarter, demonstrating strong resilience amid global trade fluctuations.

Just as bilateral tariff reduction cooperation is progressing in an orderly manner, the US recently introduced unilateral tariff increases targeting multiple trading partners, and also made corresponding tariff arrangements against China. China clearly opposes all forms of unilateral tariff measures, as tariff wars and trade wars are not in the interest of any party. Regarding the improper actions of the US, China will conduct a comprehensive assessment and reserves the right to take all necessary measures. At the same time, China's sincerity in promoting dialogue and consultation remains unchanged, and the door to resolving issues is always open. The healthy and stable development of China-US economic and trade relations serves the fundamental interests of both countries and is the common expectation of the international community.