US, China agree tariff cuts on $30 billion goods, launch AI dialogue

The United States and China agreed to cut tariffs on $30 billion of goods and start formal AI talks during Xi Jinping's Washington visit. The deals extend their trade truce and add new channels on technology, diplomacy and foreign policy.

In Short

• Tariff relief covers non-sensitive goods moving both ways between both economies
• US exports affected include farm produce, wood and cosmetics, officials said
• Chinese goods covered include small appliances, toys and festive decorations

The United States and China have agreed to reduce tariffs on USD 30 billion worth of goods and launch a new dialogue on artificial intelligence following Chinese President Xi Jinping’s three-day visit to Washington, the two countries said.

The White House said the agreement covers USD 30 billion of non-sensitive goods in each direction. Tariff reductions will apply to US exports including agricultural products, wood and cosmetics, as well as Chinese goods imported by the US, including small appliances, toys and decorations.

The two sides also agreed to establish a trade council and extend the outcomes of earlier negotiations held in Kuala Lumpur, according to the Chinese Foreign Ministry.

The summit between Xi and US President Donald Trump ended on Friday without major public breakthroughs but highlighted the two leaders' personal diplomacy. Xi has since returned to Beijing, Chinese state news agency Xinhua reported on Saturday.

The agreement comes after Washington and Beijing extended their existing trade truce by two months. The truce had been due to expire on November 10, with US Treasury Secretary Scott Bessent saying the extension would provide more time to work towards a broader trade agreement.

Chinese Foreign Minister Wang Yi said the visit had strengthened what he described as a constructive and stable China-US relationship and would have a long-term impact on global peace and development.

AI DIALOGUE, INCIDENT COMMUNICATION CHANNEL

The two countries also agreed to begin a formal dialogue on the risks and benefits of artificial intelligence, with the next round of discussions scheduled for November.

Washington and Beijing will establish a communication channel to address AI-related incidents, according to statements from both governments. The White House said the leaders had agreed to use the term "super intelligence" instead of "artificial intelligence".

China said it valued Washington's adoption of the new terminology and called for greater exchanges as AI technology develops.

The two countries also agreed to support each other in hosting major international gatherings, including the Asia-Pacific Economic Cooperation leaders' meeting and the G20 summit. Trump and Xi plan to attend the respective summits hosted by the other country.

On foreign policy, Washington and Beijing said they agreed that Iran should uphold its commitment not to develop nuclear weapons. They also agreed that no country or entity should impose transit tolls on international waterways.

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