Washington and Beijing Discuss Reciprocal Tariff Arrangement Worth $30 Billion Each
Key Facts
China and the United States held the first meeting of their Trade Council by video on November 13, under their economic and trade consultation mechanism, according to China’s Ministry of Commerce. The sides discussed follow-up to the results of previous consultations, including tariffs, a reciprocal reduction arrangement worth $30 billion each, and agricultural trade. The ministry said the two sides would continue communicating through the council to address their trade and economic concerns. The meeting statement did not clarify whether the talks produced any agreements, Reuters reported. The meeting therefore puts existing proposals under follow-up, while the statement announced no date for implementing the reduction arrangement.
The council’s procedures, published on September 27, set out a process for considering a selected list of goods from each side worth about $30 billion, with a view to granting them reciprocal reduced tariff treatment. The framework requires the treatment to be consistent with each side’s domestic laws and procedures. Recommendations from the U.S. Trade Representative also call for $30 billion in non-sensitive goods from each side that could receive better tariff treatment in the future. The areas cited include agricultural products and medical devices, as well as Chinese household goods and toys that benefit U.S. consumers. The Office of the U.S. Trade Representative said improved market access could cover about 30% of U.S. exports to China, an estimate of the share of exports that could benefit from better access.
Reuters linked the proposal to a reciprocal tariff-cutting package worth $60 billion and said the plan had not been finalized when its report was published on November 14. According to the agency, the package includes U.S. agricultural goods that China imported worth about $17 billion in 2024. Agricultural purchases are central to the discussion: Reuters said China’s purchases of U.S. agricultural goods excluding soybeans were heading for a seven-year low in 2026, despite an annual purchase agreement worth $17 billion through 2028. It also reported that Beijing urged Washington to implement the tariff-cutting agreement, describing it as a prerequisite for increasing its agricultural purchases. The White House had previously said China would suspend tariffs on a broad range of U.S. agricultural products through December 31, 2026.
The two sides’ concerns extend beyond tariffs to the scale of trade and related commitments. U.S. goods trade with China totaled $582.5 billion in 2024, according to unadjusted data from the U.S. Census Bureau. This included $143.5 billion in U.S. exports to China, against U.S. imports worth $438.9 billion. These are goods trade figures, not goods and services. Against the backdrop of the negotiations, China’s current account recorded a preliminary surplus of $654.1 billion in the first three quarters of 2026, according to the State Administration of Foreign Exchange. These figures show the breadth of trade ties between the two countries, alongside China’s external surplus during the period.
The Trade Council’s procedures say deputy officials are to develop proposals on selected goods for senior officials to consider, and that deputies are to meet at least once every three months. Senior officials are to meet as needed to consider the proposals. China’s Ministry of Commerce said the two sides would continue using the council to strengthen communication and advance efforts to address their economic and trade concerns, without setting a date for the next meeting. Reuters reported that the White House had indicated an upcoming meeting between Presidents Donald Trump and Xi Jinping on Thursday on the sidelines of the Asia-Pacific Economic Cooperation forum in Shenzhen. In China, the National Bureau of Statistics set November 16 at 10:00 as the release time for economic performance, industrial output and retail sales data.