USTR Launches Public Comment Process on Proposed U.S./China Board of Trade

Agency seeks recommendations on tariff reductions, non-sensitive goods, and structure of a new mechanism aimed at managing bilateral trade tensions

The Office of the U.S. Trade Representative (USTR) opened a public comment period on a proposed U.S./China Board of Trade, a new framework designed to manage the economic relationship between the world’s two largest economies while potentially reducing tariffs on selected non-sensitive goods.

The initiative follows President Donald Trump’s meeting with Chinese President Xi Jinping and is intended to support ongoing trade negotiations led by U.S. Trade Representative Jamieson Greer.

According to a Federal Register notice released by USTR (link), the proposed Board of Trade would serve as an “adapter” mechanism to promote greater reciprocity, balance, and durability in U.S./China trade. The administration emphasized that significant structural differences remain between the two economies, citing China’s non-market policies, industrial subsidies, intellectual property concerns, regulatory barriers, and lack of reciprocal treatment for U.S. exports.

Under the proposal, the United States and China would consider reducing tariffs on an equal value of designated non-sensitive goods from each country while monitoring trade flows and outcomes over time. The administration stressed that tariffs and other trade remedies would likely remain necessary if broader concerns about China’s economic practices persist.

The tariff relief under consideration would apply only to duties imposed above normal most-favored-nation (MFN) rates. While the notice does not specifically reference Section 301 or Section 232 authorities, it notes that certain additional tariffs imposed under U.S. trade laws could potentially be modified if doing so would not conflict with U.S. legal, economic, or national security interests.

USTR seeking industry input. The agency is requesting feedback on several key questions, including:

• Which Chinese imports should be classified as non-sensitive and potentially eligible for tariff reductions. 
• Which existing U.S. tariffs could be lowered without harming domestic industries. 
• Which American industries, workers, producers, or consumers would benefit or be negatively affected by tariff modifications. 
• Which Chinese tariffs create the greatest obstacles for U.S. exporters. 
• Which U.S. products Chinese consumers would be most likely to purchase if tariffs were reduced. 

USTR is also seeking recommendations on the operational structure of the proposed Board of Trade, including how often it should meet, how it should evaluate changes to the list of non-sensitive products, and what mechanisms should be established to share trade-flow data between the two governments.

Potential implications. The proposal represents a notable shift from the broad tariff escalation that has defined much of the U.S./China trade relationship since the first Trump administration. Rather than pursuing across-the-board tariff reductions, the Board of Trade concept would create a managed framework allowing limited, reciprocal tariff adjustments tied to specific products and trade volumes.

For U.S. agriculture, manufacturing, and export-oriented industries, the process could create opportunities to identify products where tariff relief would improve market access in China without raising significant national security concerns. The comment process also provides stakeholders an opportunity to influence which sectors may benefit from future tariff reductions.

Public comments are due by July 10, with rebuttal and response comments due by July 27. The feedback will help shape the administration’s negotiating position as discussions with China continue.