$30 Billion Tariff Cuts on Table Ahead of Trump-Xi Summit
The US and China are quietly negotiating reciprocal tariff reductions worth $30 billion per side ahead of President Trump's meeting with President Xi Jinping in September.
The discussions focus on 'non-sensitive' goods, such as US agricultural and energy exports heading to China, and Chinese manufacturing inputs coming to the US. These goods do not trigger national security objections, allowing negotiators to make progress without wading into contentious issues like semiconductor restrictions or EV tariffs.
The goal is to implement these reductions 'at an early date,' according to China's Commerce Ministry spokesperson Huang Ling. The talks build on a framework established during the May 2026 Beijing summit, which set up a trade truce between the two countries that doesn't expire until November 10, 2026.
The September meeting will be the third in-person dialogue between Trump and Xi within a year. Bilateral trade between the US and China has already exceeded $400 billion in the first eight months of 2026.