China and US seek input on reciprocal tariff cuts covering $30 billion in goods on each side

Jul 23, 2026

China and the United States are soliciting feedback on a reciprocal tariff reduction framework covering about $30 billion worth of goods on each side. Chinese Commerce Ministry official Meng Huating said China was consulting domestic companies, business associations, local governments, and U.S. business groups, while the United States was separately collecting public comments. The proposed cuts focus on non-strategic goods, including certain agricultural and consumer products. The two countries are still working out the structure, functions, and operating model of proposed Trade and Investment Councils agreed upon following Donald Trump's May 2026 visit to Beijing. Marco Rubio said implementation of the councils could be a concrete deliverable before Xi Jinping's expected U.S. visit in September, while the specific tariff arrangements are to be finalized as soon as possible.

Reciprocal tariff reduction framework

▪The proposed reciprocal tariff reduction framework targets tariff cuts on approximately $30 billion in trade for each side.
▪The proposed tariff cuts focus on non-strategic, non-sensitive goods, including certain agricultural products, low-end consumer items, and select energy commodities, while excluding semiconductors, rare earth minerals, and advanced technology.
▪The United States Trade Representative opened its own public comment period on the reciprocal tariff cut arrangements and the Trade Council on June 2, 2026, with a stakeholder feedback deadline of July 10, 2026.
▪China is seeking public feedback from domestic companies, business associations, local governments, and U.S. business associations on a proposed reciprocal tariff reduction framework with the United States.

Proposed Trade Council

▪The Trade Council was agreed upon by President Donald Trump and President Xi Jinping during Trump's state visit to Beijing in May 2026.
▪Meng Huating said the Chinese and U.S. economic and trade teams were maintaining close communication regarding the structure, functions, and operating model of the proposed Trade Council.

Proposed Investment Council

▪The establishment of an Investment Council was agreed upon alongside the Trade Council during President Donald Trump's visit to Beijing in May 2026 to stabilize bilateral relations.
▪After meeting Chinese Foreign Minister Wang Yi in Manila on July 22, 2026, U.S. Secretary of State Marco Rubio said the United States and China were moving toward implementing the trade and investment boards.

Xi Jinping US visit

▪President Donald Trump stated that he expects Chinese President Xi Jinping to visit the United States around September 24, 2026, coinciding with the United Nations General Assembly in New York.
▪U.S. Secretary of State Marco Rubio stated that establishing the trade and investment boards is a potential concrete deliverable ahead of Chinese President Xi Jinping's expected visit to the United States.

Institutionalized trade management

▪Meng Huating stated that the two new councils will transition China-U.S. economic and trade consultations from crisis response to institutionalized management.
▪Trade between China and the United States totaled over $289 billion in the first six months of 2026, remaining broadly unchanged from the same period in 2025.