The world's two largest economies are easing trade frictions by expanding the import of energy resources and reducing barriers for non-sensitive commodities. China will buy at least 10M metric tons of US coal annually in 2027 and 2028 and will seek preferential tariffs on $30B of non-sensitive goods via the newly operationalized US-China Board of Trade. This agreement covers US seafood, timber, cosmetics and medical devices, as well as Chinese holiday decorations, toys and small appliances.

USTR Greer characterized the current arrangement as a managed trade situation and indicated that progress has been made on a specific subset of tradeable goods. Forthcoming announcements will include tariff exemptions for agricultural, medical and low-tech products. The overall reduction in average tariff rates is being driven by these individual exemptions rather than changes to baseline rates.