Both countries released lists of goods valued at $30 billion each that are in line for tariff cuts, a move experts say is significant after US President Donald Trump hosted Chinese President Xi Jinping in Washington last week.
China said 1,619 US goods entering the country would be eligible for lower tariffs, including corn, hair and personal care products, timber and medical equipment such as X-ray machines. Live animals listed for "pure-bred breeding" include whales, emus and dugongs, alongside surgical robots. American meat, wheat, dairy, vegetables and vegetable oil are also set to receive lower Chinese tariffs.
The US listed 77 categories of Chinese goods for reduced tariffs, including fireworks, tableware, toys such as dolls and puzzles, glass and wooden Christmas ornaments, soccer balls and household scales.
Notably absent from both lists were American soybeans, the US's largest single export to China, as well as rare earth minerals and technology linked to artificial intelligence, which continue to face significant trade restrictions on both sides.
China's commerce ministry said in a statement the agreement would help strengthen trade cooperation, with tariffs on more than 90 per cent of the products to be subject to "most-favoured nation" levels, the standard World Trade Organization rates that are often in the single digits but vary item by item.
US Trade Representative Jamieson Greer said the product lists focused on "non-sensitive goods on each side that could benefit from more favourable tariff treatment". He said the deal could help secure better market access in China for US farmers and businesses, while American consumers would benefit from cheaper household goods.
Neither side detailed the specific reduction each item would face, nor a timeline to implement the changes. Both countries said the lists could be adjusted, but were likely to be reviewed only on an annual basis.
ING Bank chief economist for Greater China Lynn Song said the deal could be the first step in boosting bilateral trade. Monash University economics professor Shi Heling told the ABC it showed China and the US had taken "a substantive step toward tariff reduction, or toward cooling the trade conflict". He noted the deal was worth only a fraction of total bilateral trade, but that lower tariffs on household items and Christmas-related gifts could help lower inflation heading into the festival shopping season, and politically, US voters are extremely sensitive to prices ahead of the November midterm elections.