US, China Agree On $30 Billion Tariff Deal, AI Talks As Xi Wraps Up US Visit
China and the United States have agreed on a package covering tariffs, trade, investment, artificial intelligence, energy and critical minerals following Chinese President Xi Jinping's three-day state visit to Washington, as the world's two largest economies seek to stabilise ties while continuing to manage broader strategic differences.
Under an eight-point understanding reached during Xi's talks with US President Donald Trump, the two sides agreed on recommendations for more favourable tariff treatment covering $30 billion of non-sensitive goods in each direction, according to the White House and China's state news agency Xinhua.
The arrangement is broader than an across-the-board tariff reduction. US exports covered by the understanding include agricultural products, fish and seafood, logs and wood products, cosmetics and medical devices, while US imports from China include small appliances, toys, holiday decorations and children's car seats.
Washington and Beijing also agreed to operationalise the US-China Board of Trade and Board of Investment, mechanisms created during their May summit. The Board of Trade will include a working group focused on agricultural market-access barriers, while the investment board will provide a channel for addressing investment opportunities and obstacles.
China also agreed to import at least 10 million metric tonnes of US coal in both 2027 and 2028. The two countries will continue discussions on rare earths and other critical minerals, with Washington seeking a return to more appropriate shipment levels.
The latest arrangements build on the earlier decision to extend the existing US-China trade truce by two months, providing negotiators with additional time to work towards a broader agreement.
The two sides also discussed efforts to curb the production and trafficking of fentanyl. Washington welcomed China's scheduling of certain fentanyl-related substances and noted new Chinese export controls on two fentanyl precursor chemicals. The White House said China had arrested 21 Chinese citizens in August following information supplied by US law enforcement.
Trump also urged Xi to increase production of refined petroleum products to help stabilise global supplies. The two leaders discussed energy cooperation as part of their wider economic engagement.
Artificial intelligence emerged as another major area for direct engagement. Washington and Beijing agreed to establish a US-China Super Intelligence Dialogue to discuss the risks and opportunities linked to advanced AI, with the next exchange expected by November. They will also establish a bilateral communication channel to address incidents involving AI.
China welcomed Washington's use of the term “super intelligence” in discussions on emerging technologies. Beijing said the rapid development of AI made greater communication between the two countries necessary.
Trump and Xi also discussed Iran, Russia and North Korea. The two sides agreed that Iran should not develop or possess a nuclear weapon and that international waterways should not be subject to transit tolls imposed by countries or other entities.
Trump advocated trilateral arms-control negotiations involving the United States, Russia and China. The two countries additionally recalled their cooperation during World War II.
Xi and Trump agreed to maintain high-level contact through upcoming international summits. Xi is expected to meet Trump again at the APEC leaders' meeting in China, while Trump is expected to attend the G20 summit in the United States. Xi also invited Trump and First Lady Melania Trump to visit China.
Xi's September 23-25 trip was his first state visit to the United States in 11 years. Trump and Melania hosted Xi and his wife, Peng Liyuan, for tea and other ceremonial engagements during the visit.
The United States also welcomed the arrival of two giant pandas leased by China to Zoo Atlanta, adding a symbolic element to a summit dominated by trade, technology and strategic issues.