The United States and China have agreed to pursue tariff cuts covering 60 billion dollars of two-way trade, one of the main outcomes of last week’s summit between President Donald Trump and Chinese President Xi Jinping. Each country recommended 30 billion dollars of non-sensitive imports for more favourable treatment.

The proposed reductions cover US agricultural products, coal and medical equipment, alongside Chinese toys, kitchenware and household goods. About 90 per cent of covered products would receive most-favoured-nation treatment once domestic procedures are completed. Their trade truce was extended until January 10, giving negotiators more time.

Soybeans, the biggest US agricultural export to China, were excluded despite a separate Chinese commitment to buy 25 million metric tons annually. The package remains small beside the 415 billion dollars in goods traded between them last year, showing how limited the breakthrough is.

Major disputes over export controls and Taiwan remain unresolved. Non-sensitive trade remains one area where agreements are still possible, and both sides say they will keep talking.