US AND CHINA ANNOUNCE TARIFF CUTS ON $60BN OF GOODS

The United States and China announced plans on Monday to reduce tariffs on $30 billion worth of goods from each country, according to government announcements from both nations. The move follows a summit between US President Donald Trump and Chinese President Xi Jinping in Washington DC last week. Washington's list of affected imports covers mostly toys, sports equipment, Christmas decorations, dolls and fireworks. Beijing's list is far longer and includes American agricultural products as a major category. It was not immediately clear when the lower tariffs would take effect or by how much duties would fall.

The announcement comes against a backdrop of tariffs imposed by both countries last year, with the US applying duties of more than 40% on Chinese goods and China applying tariffs exceeding 30% on US goods. The US goods trade deficit with China stood at more than $202 billion last year, according to official figures, as Washington has sought to narrow the gap between what it exports to China and what it imports from it. Jacob Cooke, chief executive of WPIC, a company that helps US brands sell into the Chinese market, said the tariff cuts could provide a boost to US consumption and retailers if implemented before the holiday season. Cooke said Beijing's import list includes fast-growing categories such as hair care and packaged pet food, where Chinese brands compete strongly against US products, adding that "every percentage point counts for price competitiveness and preserving margin."

The two countries limited further tariff increases after reaching a one-year truce last autumn. US Treasury Secretary Scott Bessent said last week that negotiators had agreed to extend that truce until January. One report said rare earths remain a point of disagreement between the two sides, and that the Trump-Xi summit produced no major breakthroughs on issues including artificial intelligence, Iran and Taiwan. Officials from both countries have yet to confirm a firm timetable for implementing the tariff reductions.