US and China Agree to $60 Billion Reciprocal Tariff Cuts and Extended Trade Truce 📈

• Overall Trade Agreement: The US and China agreed to cut tariffs on US$ 60 Bn worth of reciprocal non-sensitive goods (US$ 30 Bn from each side) following the recent Washington summit between President Xi Jinping and President Donald Trump. • Trade Truce Extension: A two-month extension of the trade truce pushes the deadline to January 10, providing market predictability and allowing time to assess broader bilateral trade mechanisms. • US Export Tariffs Reduced: China agreed to lower levies on US agricultural items (corn, wheat, meat, dairy, vegetable oils) excluding soybeans, alongside seafood, wood products, cosmetics, and medical devices. China also committed to importing 10 million metric tons of coal annually from the US in 2027 and 2028. • Chinese Export Tariffs Reduced: Washington will lower tariffs on Chinese small household appliances (coffee makers, toasters), tableware, bedding, toys, holiday decorations, and child car seats. • Broader Sector Impact: • Agriculture: Establishes a joint working group to boost US market access under a US$ 17 Bn purchase commitment. • Finance & Technology: China will process licenses for foreign financial institutions. Both nations established an incident response communication channel for artificial intelligence ahead of November talks. • Market Reaction: Chinese tech stocks dropped, pulling the benchmark blue-chip index down over 2% due to ongoing US national security restrictions on Chinese tech components.