China and US Hope to Agree on Tariff Reductions Soon

China and the United States hope to soon reach an agreement on reciprocal tariff reductions involving $30 billion worth of goods from each side.

Key points

• Negotiators are striving to implement the targeted tariff reductions on non-sensitive goods ahead of a planned summit.
• US President Donald Trump and Chinese leader Xi Jinping are expected to meet in Washington DC on September 24.
• The ongoing negotiations are a central part of creating a US-China Board of Trade agreed upon during a previous meeting in May.
• Barclays Bank noted that the existing tariff truce between the two nations is set to expire on November 10.

Why it matters

An agreement on reciprocal tariff reductions could help stabilize trade relations between the world's two largest economies ahead of the upcoming leadership summit.