Washington and Beijing mull reciprocal tariff reductions – but not for clothing

On Sunday, the White House released lists of products that could benefit from tariff cuts under an arrangement with Beijing covering $30 billion of trade in each direction, without specifying the rates or the timetable. While household linens appear on the provisional list, clothing is currently excluded.

The two countries will “examine” these lists, valued on the basis of 2024 trade flows, with a view to reciprocal reductions “in accordance with their domestic laws and procedures,” according to the White House document outlining the framework. No tariffs have been changed yet. 

The United States could reduce its tariffs on 77 categories of Chinese products, including fireworks, small domestic appliances (microwaves, toasters, and coffee makers), Christmas lights, child car seats, non-connected toys, and sports balls.

With clothing absent from the list, this diplomatic thaw is unlikely to have any direct impact on the sector. Historically the United States’ leading supplier of textiles and clothing, China has slipped to second place after a 27.2% decline in the first seven months of 2026 compared with the same period in 2025.

However, if these tariff cuts were to boost purchasing power in the United States, it could mean a great deal for the US fashion industry, which was among the first to suffer from the inflation-driven trade-offs prompted by protectionist measures.

For its part, China could reduce its tariffs on more than 1,600 categories of US goods, including beef, pork and poultry, seafood, dairy products, wheat, maize, coal, whisky, cosmetics, timber, and medical equipment.

In the early hours of Saturday, the White House announced a consensus on “recommendations” for more favourable customs treatment of these “non-sensitive” goods, following Xi Jinping’s state visit to Washington. Beijing confirmed on Saturday an “arrangement” for reciprocal tariff reductions, which the two leaders requested be implemented.

Washington also reported a Chinese commitment to import at least 10 million tonnes of US coal per year in 2027 and 2028. This commitment does not feature in Beijing’s statement. On rare earths, which lie at the heart of the dispute, discussions are continuing, according to the White House.

“We want a set of goods that we can trade with the Chinese on more favourable terms,” US Trade Representative Jamieson Greer told CNBC on Friday, having promised further details by Monday. Washington and Beijing had sealed a fragile trade truce in October 2025, after slapping punitive tariffs on one another. This truce, which was due to expire on November 10, was extended on Wednesday until January 10, 2027.

Jamieson Greer will host the G20 preparatory meetings on trade in Milwaukee (Wisconsin) on September 30 and October 1.

FashionNetwork.com with AFP