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.
