China and the United States have agreed to reduce tariffs on approximately $30 billion worth of goods from each side, marking a significant step in their ongoing economic and trade consultations. The consensus will see tariffs on around 90% of the covered products lowered to most-favoured-nation rates, with reductions taking effect simultaneously after both countries complete their respective domestic procedures.
In addition to the tariff reductions, the two nations have decided to extend their existing economic and trade arrangement from November 10, 2026, to January 10, 2027. This extension allows additional time for negotiations on a more comprehensive long-term agreement, as both countries aim to strengthen their economic ties.
To facilitate ongoing discussions and address trade issues more effectively, China and the U.S. will establish a Board of Trade. This body will enhance bilateral trade discussions, while an agricultural working group will focus on improving market access and addressing regulatory concerns. The formation of a bilateral investment board is also part of the plan, which will discuss investment opportunities, trade barriers, and policy transparency.
Moreover, both nations have agreed to continue their dialogue on artificial intelligence. A new communication channel for AI-related incidents is set to be established, with another round of talks scheduled before the end of November. This initiative reflects the growing importance of artificial intelligence in global trade discussions and the need for collaborative approaches to address related challenges.