China and US Discuss Tariff Cuts and Farm Trade at First Trade Council Meeting

China and US Discuss Tariff Cuts and Farm Trade at First Trade Council Meeting

China and the United States have discussed reciprocal tariff reductions, agricultural trade and other commercial issues at the first meeting of their bilateral trade council, as the world's two largest economies seek to stabilise economic relations ahead of an expected meeting between their presidents in Shenzhen next week.

China's Ministry of Commerce said on Saturday that officials from both countries held the meeting by video link on Friday. The discussions focused on implementing the outcomes of previous rounds of economic and trade consultations, including a proposed arrangement covering approximately $30 billion worth of goods on each side.

According to Reuters, the ministry described the exchanges as candid, in-depth and constructive, but did not announce any new agreements or confirm that the proposed tariff reductions had been finalised.

The trade council was established in May 2026 following an agreement between Chinese President Xi Jinping and U.S. President Donald Trump. It is intended to provide a regular channel for addressing trade concerns and identifying areas where the two sides can expand commercial cooperation.

The proposed tariff arrangement emerged from bilateral consultations in September. Under the framework, each country would reduce tariffs on around $30 billion worth of imports from the other, with approximately 90% of the products covered expected to receive most-favoured-nation tariff treatment after the relevant procedures are completed.

The arrangement could be significant for agricultural exporters, manufacturers and consumer-goods companies. However, it remains a proposal rather than a fully implemented trade agreement.

According to Xinhua, the Ministry of Commerce said both sides would continue using the trade council to strengthen communication, resolve economic and trade concerns, expand cooperation and reduce the list of outstanding issues.

Agricultural trade is one of the most important areas under discussion. China is a major market for U.S. agricultural products, particularly soybeans, while American farmers have been affected by changes in Chinese purchasing patterns during periods of trade tension.

The proposed package includes approximately $17 billion worth of U.S. agricultural goods that China imported in 2024. The two countries have also discussed a commitment for China to purchase $17 billion in U.S. agricultural products annually through 2028.

However, the implementation of those commitments remains uncertain. A Reuters analysis of customs data indicated that Chinese purchases of U.S. agricultural products other than soybeans were on track to reach a seven-year low in 2026.

Beijing has repeatedly urged Washington to implement the reciprocal tariff-reduction arrangement, describing it as an important condition for expanding agricultural purchases. The issue illustrates how trade commitments, tariff policy and commercial decisions remain closely connected.

The timing of the meeting is also important. Trump is expected to meet Xi on November 19 during the APEC Economic Leaders' Meeting in Shenzhen. The two leaders may use the summit to assess progress on trade and broader bilateral relations.

For companies, the trade council could provide a more predictable mechanism for addressing tariffs and market-access concerns. Businesses operating across the Pacific have faced uncertainty from changes in trade policy, export controls and geopolitical tensions.

Nevertheless, the first meeting has not resolved the structural differences between the two economies. Disputes over technology restrictions, industrial policy, market access and strategic supply chains remain significant.

The immediate outcome is therefore best understood as the establishment of a working channel rather than a breakthrough. Whether the mechanism can deliver tangible benefits will depend on the implementation of tariff commitments and the willingness of both governments to maintain dialogue.