China, US agree to cut tariffs on $30b of goods

China and the United States have reached an arrangement to reciprocally reduce tariffs on about $30 billion worth of goods from each side, with tariffs on around 90 percent of products covered to be lowered to most-favored-nation rates, the Ministry of Commerce announced on Monday.

The two sides agreed to extend their Kuala Lumpur economic and trade arrangement, originally due to expire on Nov 10, 2026, until Jan 10, 2027, while continuing discussions on a longer-term solution, said the head of the Ministry of Commerce's department of American and Oceanian affairs in an online statement.

The two sides reached a consensus on the tariff reduction arrangement during the eighth round of China-US economic and trade consultations held in New York and Washington from Sept 20 to 23, the commerce official said.

The two sides will implement the reductions simultaneously after completing their respective domestic procedures, with further details to be released later.

The commerce official added that China and the US also agreed to establish a Board of Trade under their economic and trade consultation mechanism to promote bilateral trade. An agricultural working group has been established under the board to discuss two-way market access and regulatory issues, with its first meeting scheduled before the end of 2026.

Furthermore, the two countries agreed to establish a bilateral investment board to hold regular discussions on potential investment opportunities and barriers and enhance policy transparency and predictability.

In addition, China and the US will continue their dialogue on AI, with the next round scheduled before the end of November, and also establish a communication channel for AI-related incidents.