China, US discuss tariffs, farm trade

First trade council meeting held ahead of Xi-Trump talks next week

BEIJING:

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 an expected leaders' meeting in Shenzhen next week.

"The two sides held candid, in-depth and constructive exchanges on implementing the outcomes of previous China-US economic and trade talks, including tariffs, a reciprocal '$30 billion-for-$30 billion' tariff-cut arrangement, agricultural trade and other issues of mutual concern," the ministry said.

It did not say whether any agreements were reached. Both sides will continue using the council to address trade concerns, expand cooperation and reduce outstanding issues, the ministry added.

Following a September summit between Chinese President Xi Jinping and US President Donald Trump in Washington, the two sides proposed a $60 billion package of reciprocal tariff cuts, including roughly $17 billion worth of US farm goods that China imported in 2024, but the plan has yet to be finalised.

Chinese purchases of US farm goods other than soybeans are on track to hit a seven-year low this year, despite an agreement to buy $17 billion annually through 2028, a Reuters' analysis of customs data showed earlier this month, underscoring persistent uncertainty over the deal.

Beijing has repeatedly urged Washington to implement the $60 billion tariff-reduction deal, calling it a prerequisite for increasing purchases of US farm goods. The White House said Trump will meet Xi on Thursday on the sidelines of the Asia-Pacific Economic Cooperation forum in Shenzhen.

Canada, US make progress on trade deal

Canadian Prime Minister Mark Carney said on Saturday he had held lengthy, substantive talks with US President Donald Trump and the two countries were making progress towards a trade deal, though they had yet to reach an agreement.

Carney, who is in the Philippines for a state visit and meeting with Southeast Asian leaders, also said his country would not walk away from NATO and that the security architecture for a free Europe would be determined by a free Europe and NATO, not Russia.

US Treasury Secretary Scott Bessent said on Friday he believed the US would secure trade deals with Mexico and Canada, a day after Trump threatened to double tariffs on Mexico over a migrant caravan.

"I am optimistic that we can get trade deals with Canada and Mexico," Bessent said in an interview with CNBC. The treasury chief did not elaborate. Nor did he mention Trump's warning to Mexico on Thursday that he would double tariffs on the country if it did not stop more than 1,000 migrants walking north towards the United States.

The tariff threat came amid sensitive US trade negotiations with Mexico and Canada that have continued after Trump chose in July to not extend the US-Mexico-Canada trade pact.

Trump was elected to a second term as president in 2024 in part over concern among US voters about the border. Since then, Trump has highlighted some migrant caravans but also said in recent months the issue has become less politically potent for him and his fellow Republicans.

Earlier this week, Finance Minister Francois-Philippe Champagne said in a statement Canada will extend until June 30, 2028 a programme that offers relief on tariffs that Ottawa imposed on some US imports.

The relief applies to imports that are in short supply in the Canadian market such as non-steel goods used in mining, quarrying, or the extraction of oil and gas, he said.