China and US Consult Stakeholders on $30 Billion Reciprocal Tariff Reductions

The two nations are moving from broad diplomatic agreements toward concrete execution. According to the Ministry of Commerce (MOFCOM), economic and trade teams are now maintaining close communication to finalize specific product-level tariff cuts and establish a formal trade council.

The $30 Billion Reciprocal Framework

At the center of these negotiations is a framework for reciprocal tariff reductions worth $30 billion on each side. Meng Huating, director-general of the Department of Foreign Investment Administration at the MOFCOM, confirmed during a Beijing press conference that both nations are seeking wide-ranging input to ensure the cuts are practical and effective.

China is consulting widely on the proposed tariff reductions, seeking views from domestic companies and business associations, local governments, and US companies and chambers of commerce in China. The US side, meanwhile, is seeking public comment on the board and the tariff framework. Meng

China is soliciting input on the proposed tariff reduction arrangements from a broad range of stakeholders, including domestic enterprises, business associations, local governments and business associations representing U.S.-funded enterprises. Simultaneously, the U.S. is soliciting public comments on the board of trade and the reciprocal tariff reduction arrangements.

While the overarching goal is broader trade expansion, specific sectors are already in focus. The two nations have agreed in principle to include agricultural products in a reciprocal tariff reduction framework following recent talks, according to a statement from China’s Ministry of Commerce on Thursday, as they look to preserve a broader trade truce that was struck last year.

Establishing the Trade Council Mechanism

Beyond immediate tariff cuts, the two sides are designing a “trade council”—a mechanism born from the consensus of the two heads of state. Meng Huating noted that economic and trade teams are maintaining close communication on specific arrangements regarding the structure, functions and operating model of a board of trade.

Once these arrangements are in place, it will provide clearer channels for addressing specific issues,” said Gao Lingyun, a research fellow at the Chinese Academy of Social Sciences.

The groundwork for this council was laid during economic and trade consultations in South Korea in May 2026, where both sides agreed to establish trade and investment councils to discuss their respective concerns in the trade and investment areas. During those talks, they also agreed in principle to discuss a framework for reciprocal tariff reductions on products of the same scale under the trade council, according to the MOFCOM.

By June, MOFCOM spokesperson He Yadong indicated that the two countries’ economic and trade teams would discuss cooperation under the trade council, including reciprocal tariff reductions.

Trade Recovery and the 2025 Friction

The push for these reductions comes after a volatile period. In 2025, the U.S. administration announced additional tariffs on Chinese goods, which triggered renewed tariff tensions. China responded with corresponding countermeasures and has consistently said that trade wars have no winners and protectionism has no way out, urging the U.S. to resolve differences.

Despite those tensions, Gao Lingyun told the Global Times on Thursday that the latest developments signal that China and the US are advancing follow-up economic and trade work in line with the consensus reached by the two heads of state. Gao added that preparations for the trade council appear to be moving toward a more concrete stage, and the new communication on tariff reductions could be seen as a positive step in translating consultation outcomes into practical arrangements.

Gao further noted that over the longer term, the mechanism could help make China-US economic and trade communication more regular and stable, ensuring that agreed outcomes can be further implemented.

Implementation Path

The Ministry of Commerce stated that the two sides will maintain close communication and finalize tariff reduction arrangements for specific products as soon as possible. Meng Huating added that they will work to advance their implementation as soon as possible, creating favorable conditions for further expanding bilateral trade.

The current effort is described by the Ministry of Commerce as an effort expected to further boost bilateral trade, moving the two nations from high-level consensus toward concrete arrangements to implement the outcomes of previous economic and trade consultations.