The U.S. and China agree to $60 billion in tariff cuts on products like dolls and fireworks. Rare earths remain a sticking point.

China has included U.S. coal in the $30 billion list of mutual tariff cuts agreed upon with the United States, as announced by China’s Ministry of Commerce on the 28th. This move is expected to facilitate expanded imports of U.S. coal into China during 2027-2028, according to the ministry, which also highlighted that such imports will provide a stable revenue stream for the U.S. coal industry and create jobs.

The two countries finalized an agreement on a plan for mutual tariff reductions, with each side agreeing to lower tariffs on approximately $30 billion worth of imports from the other. Around 90% of the targeted goods from each country will be reduced to most-favored-nation rates, with specific target items to be announced later.

In agriculture, a consultative body will be established to further discuss tariff cuts. In financial services, China will review applications for U.S. financial institutions to operate and establish branches in China, ensuring compliance with local laws and regulations. Both sides also agreed to hold the next AI dialogue before the end of November.

Finally, China emphasized its commitment to continuing discussions to potentially extend the bilateral "trade truce" by an additional two months.