China, US hold first trade council meeting on tariffs and farm trade

China's Commerce Ministry said on Saturday (November 14) that China and the United States held the first trade council meeting under their bilateral economic and trade consultation mechanism by video on Friday, discussing tariff cuts, agricultural trade and other issues, but announced no agreement. The meeting came days ahead of a leaders' meeting in Shenzhen next week.

A $30 billion-for-$30 billion tariff cut, with no deal yet

The ministry said the two sides held "candid, in-depth and constructive exchanges" on implementing the outcomes of previous China-US economic and trade talks, including a reciprocal "$30 billion-for-$30 billion" tariff-cut arrangement, agricultural trade and other issues of mutual concern. It did not say whether any agreements were reached, adding only that both sides will continue using the council to address trade concerns, expand cooperation and reduce outstanding issues.

The $60 billion package is still not finalised

Following a September summit between Presidents Xi Jinping and Donald Trump in Washington, the two sides proposed a $60 billion package of reciprocal tariff cuts, including roughly $17 billion worth of US farm goods that China imported in 2024, but the plan has yet to be finalised. A Reuters analysis of customs data showed Chinese purchases of US farm goods other than soybeans are on track to hit a seven-year low this year, despite an agreement to buy $17 billion annually through 2028. Beijing has repeatedly urged Washington to implement the $60 billion tariff-reduction deal, calling it a prerequisite for increasing purchases of US farm goods.

Trump to meet Xi in Shenzhen on Thursday

The White House said Trump will meet Xi on Thursday on the sidelines of the Asia-Pacific Economic Cooperation forum in Shenzhen. The trade council's discussions are expected to form the backdrop to that meeting. Source: Reuters.