China and the United States have agreed to cut tariffs on $60 billion worth of goods imported from each other. The deal covers products including U.S. corn, meat, and medical devices, as well as Chinese household appliances, toys, and holiday decorations.
The agreement followed a summit between U.S. President Donald Trump and Chinese President Xi Jinping in Washington last week. U.S. Trade Representative Jamieson Greer stated in a Sunday, September 27, 2026, statement that both nations recommended $30 billion of trade in non-sensitive goods for more favorable tariff treatment.
Under the terms, China planned to reduce duties on U.S. agricultural products such as wheat, sorghum, dairy, and vegetable oils, though soybeans were excluded from this specific list. The U.S. proposed lowering levies on Chinese-made items including coffee makers, toasters, blankets, and children’s car seats. Additionally, the two nations agreed to a two-month extension of a trade truce through January 10, 2027.
The agreement also introduces energy and financial shifts. China committed to importing 10 million metric tons of U.S. coal annually in 2027 and 2028, an amount equal to roughly 2% of China's annual coal imports. In the financial sector, Beijing will examine and approve foreign financial services institutions, including those with U.S. capital, to open branches and conduct business within China.
Despite the agreement, market uncertainty remains. On Monday, September 28, 2026, Chinese benchmark blue-chip stocks fell more than 2% to a one-year low as investors reacted to a separate U.S. push to ban Chinese components from data centers. Moving forward, a new agriculture working group will hold its first meeting before the end of 2026, and both nations have scheduled a dialogue on artificial intelligence safety and incident communication for late November 2026. The current trade truce is set to expire on January 10, 2027.