WORLD
US, China reach deal to cut $30-billion tariffs on goods, to start talks on AI
- IBJ Bureau
- Sep 27, 2026
The US and China have agreed to reduce tariffs on $30 billion of goods and launch a dialogue on artificial intelligence (AI), both the countries have said following President Xi Jinping’s visit to Washington.
The tariff reductions will apply to US exports such as agricultural goods, wood and cosmetics as well as US imports including small appliances, toys, decorations, a White House statement has said.
“The two countries reached consensus on recommendations for more favourable tariff treatment for $30 billion of non-sensitive goods in each direction,” the White House has said.
The three-day summit between Mr Jinping and President Donald Trump, which ended on Friday, showcased personal diplomacy rather than big public breakthroughs.
Mr Jinping has since landed in Beijing, Chinese State news agency Xinhua has reported.
The two sides have also agreed to set up a trade council and extend the outcomes of earlier talks in Kuala Lumpur, the Chinese Foreign Ministry has added.
The agreement follows a move by the world’s two largest economies to extend by two months a trade truce that had been due to expire on November 10.
The truce allows more time to work on a potentially bigger trade deal, US Treasury Secretary Scott Bessent has said.
“This historic visit enriched the constructive and stable China-US relationship, upheld the overall stability of bilateral ties, opened a new chapter in China-US relations and will have a far-reaching impact on world peace and development,” Chinese Foreign Minister Wang Yi has said.
On AI, the two sides have agreed to hold a dialogue on the technology’s risks and benefits and set up a communication channel for AI-related incidents.
The White House has added that the leaders have agreed to use the term “super intelligence” in place of “artificial intelligence”.
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