China, US discuss tariffs, farm trade ahead of Xi-Trump meeting

China and the United States discussed tariff cuts, agricultural trade and other issues at their first trade council meeting on Friday, China’s Commerce Ministry said on Saturday, days ahead of a leaders’ meeting in Shenzhen next week.

The Ministry of Commerce said: “The two sides had open, in-depth and constructive exchanges on issues of common concern, such as the implementation of the results of the previous China-US economic and trade consultations, including tariffs, the “US$30 billion for US$30 billion” mutually beneficial tax reduction regime, and agricultural trade.” It did not disclose whether any agreement had been reached. The Ministry of Commerce added that both sides will continue to use the council to resolve trade issues, expand cooperation and reduce outstanding issues. After a summit between President Xi Jinping and President Trump in Washington in September, the two sides proposed a $60 billion plan to cut reciprocal tariffs that would cover $17 billion worth of Chinese imports of U.S. agricultural products by 2024, but the plan has not yet been finalized.

A Reuters analysis of customs data earlier this month showed that China’s purchases of U.S. agricultural products, excluding soybeans, will hit a seven-year low this year, despite an agreement for $17 billion a year through 2028, underscoring lingering uncertainty over the deal. Beijing has repeatedly called on Washington to implement a $60 billion tariff reduction deal, saying it is a prerequisite for increased purchases of US agricultural products.

The White House said Trump will meet with Xi Jinping on Thursday on the sidelines of the Asia-Pacific Economic Cooperation Forum in Shenzhen.