US, China agree to tariff reductions on $60 billion worth of trade

China and the United States have agreed to reduce tariffs on $60 billion worth of trade — one among several other commitments made following President Xi Jinping's state visit to America last week.

Under a new Board of Trade, the two nations recommended tariff reductions on $30 billion worth of "non-sensitive" goods on each side after Xi met with President Donald Trump, U.S. Trade Representative Jamieson Greer said in a statement. Although it was not immediately clear by how much tariffs on the select items will be reduced, Greer said the agreement will unlock "improved market access for about 30 percent of U.S. exports to China."

Greer added the move will benefit American consumers as the reductions affect household goods, toys and other products the United States typically does not import from other countries. Because U.S.-based importers pay tariffs on Chinese goods when they enter the country (and may pass those costs on to consumers), reduced tariffs could eventually lead to lower prices on those select items. But lower consumer prices are rarely guaranteed. Elevated energy and transportation costs are still putting pressure on supply chains.

"The Trump Administration will continue to pursue fair, balanced, and reciprocal trade with China…

Original source: https://www.usatoday.com/money/