China, U.S. discuss tariff cuts ahead of Trump-Xi meeting next week

China and the United States met on Friday for their inaugural trade council discussion, aiming to make progress on a proposed $60 billion deal to reduce tariffs, in the lead-up to a planned meeting between Presidents Donald Trump and Xi Jinping. According to China’s Commerce Ministry, officials from both nations deliberated on the execution of prior economic and trade agreements, encompassing mutual tariff reductions and agricultural acquisitions.

These talks also encompassed a plan for each country to implement roughly $30 billion in tariff cuts, part of a wider endeavor to alleviate trade tensions between the globe's two biggest economies. While Beijing characterized the discussions as productive, they did not disclose whether either party reached fresh agreements. The ministry emphasized that both governments would persist in employing the trade council to tackle unresolved disputes, enhance economic collaboration, and adhere to commitments from earlier negotiations.

These discussions follow a September summit in Washington, where Trump and Xi introduced a combined $60 billion bundle of reciprocal tariff reductions, encompassing about $17 billion in U.S. agricultural commodities imported by China in 2024. However, the overall accord remains unfulfilled. Agricultural trade remains a substantial hurdle, with Chinese purchases of American farm products, excluding soybeans, inching towards their lowest annual level in seven years, as per an analysis of customs data released this month.

This trend endures despite a previous pledge for China to acquire $17 billion in U.S. agricultural items annually through 2028. China frequently urges Washington to execute the proposed tariff cuts before demanding higher agricultural acquisitions, tying advancements in farm trade to the broader negotiations. The White House announced that Trump and Xi are set to convene on Thursday, away from the Asia-Pacific Economic Cooperation forum in Shenzhen, potentially offering a chance to advance the unfinished tariff pact and address discrepancies over agricultural trade, although neither administration has announced a breakthrough.