China’s Commerce Ministry announced on Saturday that Beijing and Washington have reached a preliminary understanding to lower tariffs on certain goods after high-level discussions between Chinese President Xi Jinping and U.S. President Donald Trump earlier this week in Beijing.
According to the ministry, both countries plan to establish new trade and investment councils aimed at addressing tariff policies, trade barriers, and broader economic cooperation. Officials from both sides have reportedly agreed in principle to reduce tariffs on selected products that are considered equally important to each nation.
The agreement is also expected to support increased agricultural trade between the two economic powers. China and the United States are discussing mutual tariff reductions on a range of agricultural products, although specific items have not yet been publicly identified.
In addition to agricultural trade, the two governments are working on resolving market access concerns and other non-tariff restrictions affecting agricultural goods.
China’s Commerce Ministry also stated that progress was made in aviation-related cooperation. The discussions reportedly included agreements involving the purchase of American-made aircraft, along with U.S. assurances regarding the supply of aircraft engines and related parts to China.
The developments follow a closely watched summit between Trump and Xi amid ongoing tensions between the world’s two largest economies. Trade disputes, technology restrictions, and geopolitical disagreements have continued to strain relations, especially after the intense tariff battles seen in 2025.
During the summit, President Trump highlighted potential Chinese purchases of U.S. agricultural products, aircraft, and energy resources, including oil. However, Chinese officials indicated that discussions are still ongoing and that trade teams from both countries will continue negotiations to finalize the outcomes reached by the two leaders.
Taiwan also remained a sensitive issue during the talks. Chinese officials warned that mishandling the Taiwan situation could increase tensions between Beijing and Washington. Following the meeting, Trump reiterated in a media interview that Taiwan should avoid declaring independence, a position closely watched by China, which considers the island part of its territory.
Investors and global markets are now monitoring whether the latest discussions can lead to a broader easing of trade tensions and improved economic cooperation between the U.S. and China.