Addis Ababa, May 20, 2026 (FMC) — China and the United States have agreed in principle to begin discussions on a reciprocal tariff reduction framework covering products valued at more than 30 billion U.S. dollars on each side, according to a report by China’s state-run Xinhua News Agency, citing the Chinese Ministry of Commerce.
The ministry said the discussions will take place under the bilateral trade council mechanism following the latest round of China-U.S. economic and trade consultations held recently in Beijing.
A Chinese commerce ministry official said products identified by both countries under the proposed arrangement are expected to benefit from most-favored-nation tariff rates or potentially even lower tariffs once the framework is finalized and implemented.
According to the official, the planned tariff reduction arrangement is expected to help stabilize and expand bilateral trade between the world’s two largest economies, while also contributing to broader global economic cooperation amid ongoing uncertainties in international trade.
The ministry further noted that economic and trade teams from both sides will continue close communication to finalize detailed implementation measures and accelerate the rollout of the agreement.