Washington DC — The United States and China have agreed to a reciprocal tariff-reduction arrangement covering about $30 billion in trade, while also establishing a new dialogue on artificial intelligence, according to China’s Foreign Ministry and reporting by Reuters.

The agreement was reached during Chinese President Xi Jinping’s visit to the United States and his meeting with U.S. President Donald Trump. The two sides described the discussions as part of broader efforts to manage trade disputes and maintain communication between the world’s two largest economies.

Under the arrangement, the United States and China will reduce tariffs affecting certain goods, with the agreement reportedly covering about $30 billion in reciprocal trade. U.S. Trade Representative Jamieson Greer separately said Washington and Beijing had reached understandings concerning several categories of goods, including agricultural products, medical devices and consumer goods. Further details are expected to be released by U.S. officials.

The two countries also agreed to establish a new channel for discussions on artificial intelligence. The mechanism is intended to improve communication between Washington and Beijing over AI-related issues, including incidents that could have broader security implications. The AI component comes as both countries compete for technological leadership while attempting to manage concerns over the security implications of rapidly advancing artificial intelligence.

The latest trade understanding follows years of escalating economic tensions between Washington and Beijing. Previous tariff measures had pushed duties on some goods to exceptionally high levels before the two sides moved toward a temporary reduction and broader negotiations. The new agreement does not resolve all U.S.-China trade disputes, but it creates additional areas for negotiation and communication between the two governments.

Shibbir Ahmed, New York — The United States and China opened high-level economic talks in New York on Sunday, with artificial intelligence, trade, tariffs and critical minerals on the agenda as Washington and Beijing prepare for a summit between President Donald Trump and Chinese President Xi Jinping later this week.

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are meeting at JPMorgan Chase’s headquarters in Manhattan, alongside U.S. Trade Representative Jamieson Greer. The talks were scheduled to begin at about 10:30 a.m. ET and were expected to continue throughout the day. The discussions are intended to prepare potential agreements and reduce outstanding differences ahead of the Trump-Xi summit scheduled for Sept. 24 in Washington.

Trade truce and tariffs

A central issue is the status of the current U.S.-China trade truce, which is scheduled to expire on Nov. 10. Officials are expected to discuss tariffs on non-strategic goods, market access and China’s commitments to increase purchases of U.S. agricultural products. Issues left unresolved from Trump’s May meeting with Xi in Beijing are also expected to remain part of the negotiations. The talks come as both countries seek to manage a trade relationship that has significant implications for global markets and supply chains.

Critical minerals and rare-earth supplies

Critical minerals and Chinese rare-earth magnets are another major issue in the New York discussions. The United States has raised concerns about the flow of rare-earth magnets and other critical materials needed for advanced manufacturing and technology industries. Rare earths are particularly important to the production of components used in electronics and advanced semiconductor technologies. Washington is seeking greater reliability in these supply chains as the two countries negotiate broader economic arrangements.

AI takes center stage

Artificial intelligence is emerging as a new area of U.S.-China economic and strategic competition. Bessent said the discussions are expected to cover both open-weight and closed-weight AI models. Open-weight systems make key elements of an AI model available to users, allowing them to download and modify the technology for specific applications.

U.S. officials are also interested in potential safeguards, or “guard rails,” to address shared risks associated with increasingly powerful AI systems. Reuters reported that the talks come amid concerns about security breaches involving AI models.

The United States and China are among the world’s leading developers and users of advanced artificial intelligence, making cooperation and competition over the technology an increasingly important part of their broader relationship.

Ahead of Trump-Xi summit

The New York meetings are taking place just days before Trump and Xi are scheduled to meet in Washington. Several issues from previous negotiations remain unresolved, including tariffs, agricultural purchases, rare-earth supplies and technology-related concerns. Reuters reported that analysts expect the two sides to focus on limited steps that could help prevent further escalation rather than seeking an immediate comprehensive agreement.

The outcome of the New York discussions could therefore help shape the agenda for the leaders’ upcoming meeting, while providing an indication of whether Washington and Beijing can maintain their current trade truce and expand cooperation in selected areas. The talks are also taking place as New York prepares to host world leaders for the United Nations General Assembly’s high-level week, bringing increased diplomatic activity to the city.