China and the United States have reached an understanding to provide more favourable tariff treatment to $30 billion of non-sensitive goods in each direction, during Chinese President Xi Jinping’s visit to the US. The arrangement was finalised through the countries’ Board of Trade mechanism.

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The agreement covers selected products rather than all bilateral trade. US exports included in the framework include agricultural products, fish and seafood, logs and wood products, cosmetics and medical devices, according to a White House fact sheet.

The latest understanding was part of a broader set of economic and diplomatic measures discussed during Xi’s three-day US visit. Beijing and Washington also agreed to continue discussions on trade and establish a formal channel for artificial intelligence dialogue.

The two countries have been working to contain trade tensions after years of tariff increases, retaliatory measures and disputes involving technology, rare-earth materials and market access.

The tariff arrangement follows earlier discussions on a $30 billion category of goods eligible for lower or eliminated tariffs. The US and China have also extended their existing trade truce through January 10, 2027, providing additional time for negotiations on unresolved issues.

The latest measures represent targeted tariff relief rather than a comprehensive resolution of the broader US-China trade relationship.