On June 2, 2026, the Office of the U.S. Trade Representative (USTR) published a notice in the Federal Register inviting stakeholder input on potential reciprocal tariff modifications between the United States and China. Specifically, the USTR is seeking to identify "non-sensitive" products that could be eligible for favorable tariff treatment by both governments.
 
In addition, the USTR is soliciting views on the possible establishment of a new U.S.–China Board of Trade, a government-to-government mechanism intended to manage, monitor, and optimize bilateral trade relations. Testifying before the Senate Finance Committee on June 3, Secretary of the Treasury Scott Bessent provided some insight into how the proposed Board of Trade would operate. In relevant part, Secretary Bessent stated:

If we pick a number - $30 billion by $30 billion – what are $30 billion of things, non-critical things? Fireworks, Halloween costumes, very low-end consumer items that we do not want to re-shore, that [the United States] wants to buy from [China]. What are things that [China] would like to buy from [the United States]?  Seafood, maybe energy. [The function of the U.S.–China Board of Trade is that] we will both agree: that basket on either side will have no tariffs.

Identification of "Non-Sensitive" Products

The USTR requests that stakeholders identify products for consideration by 8-digit Harmonized Tariff Schedule (HTS) code. Comments may address one or more of the following categories:

• Types of China-origin products or sectors that should be considered "non-sensitive." The USTR defines such products as those presenting "few, if any, issues related to economic and national security and supply chain resilience risks." Because this definition is inherently broad and subject to interpretation, it creates significant latitude for a wide range of industries to contend that their products qualify as non-sensitive and merit favorable treatment.
• Chinese products currently subject to additional U.S. tariffs that should be imported at lower rates (e.g., Column 1 / Most-Favored-Nation (MFN) rates). Supporting information should include:
  • Average annual value of U.S. imports from China (2022–2024);
  • China's share of total U.S. imports for the identified product(s); and
  • Whether the tariffs have resulted in tariff inversion — where tariffs on inputs exceed those on downstream products — and, if so, the average differential.
• Potential benefits and/or harms of proposed tariff modifications. Commenters should assess the expected impacts on U.S. consumers, workers, and producers. With no definition of what constitutes a benefit or harm to impacted parties, impact assessments on proposed tariff modifications are afforded flexibility for industry advocacy. 
• U. S. products currently subject to additional Chinese tariffs that should be eligible for Chinese MFN rates. Supporting information should include:
  • Average annual value of U.S. exports to China (2022–2024); and
  • Whether the product is:
    • An "agricultural product" listed in Annex 1 of the WTO Agreement on Agriculture;
    • An industrial product whose exports to China have declined significantly in recent years; or
    • A product subject to multiple Chinese tariff actions or exceptionally high Chinese tariffs.
• U. S. products subject to Chinese tariffs that have not experienced a decline in exports. These include products for which exports to China have not been significantly affected despite tariffs, or where China appears to remain reliant on U.S. supply. Based upon the guidance provided by Secretary Bessent, these products are likely to receive lowered Chinese tariffs as a counterbalance for Chinese imports of similar demand.

Proposed U.S.–China Board of Trade

With respect to the potential creation of a U.S.–China Board of Trade, the USTR seeks input on the following questions:

• How frequently should the Board convene to effectively monitor trade flows and assess the ongoing suitability of designated "non-sensitive" products?
• What criteria or processes should the Board use to evaluate whether the composition or scope of "non-sensitive" products should be modified?
• What mechanisms should be established to facilitate effective and transparent trade data sharing between the U.S. and China?

Comment Deadlines and Assistance

• Initial comments are due: July 10, 2026
• Rebuttal or response comments are due: July 27, 2026

If you are considering submitting comments to the USTR, Miller & Chevalier's Customs & Import Trade team is available to assist with strategy, data development, and drafting. Please contact the authors of this alert or any other attorney in our Customs & Import Trade practice for further information.

For more information, please contact:

Richard A. Mojica, rmojica@milchev.com, 202-626-1571

Michael Dearden, mdearden@milchev.com, 202-626-1478

Igor Sampley dos Santos, isampleydossantos@milchev.com, 202-626-6077

The information contained in this communication is not intended as legal advice or as an opinion on specific facts. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. For more information, please contact one of the senders or your existing Miller & Chevalier lawyer contact. The invitation to contact the firm and its lawyers is not to be construed as a solicitation for legal work. Any new lawyer-client relationship will be confirmed in writing.

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