US and China Strike $30B Tariff Cut, Open AI Talks at Xi Summit
Beijing and Washington agreed to slash $30 billion in reciprocal tariffs and launch new AI dialogue during Xi Jinping's US visit.
China and the United States struck a $30 billion reciprocal tariff-reduction deal and agreed to open a formal dialogue on artificial intelligence during President Xi Jinping's visit to the United States, China's foreign ministry confirmed, according to a Reuters report.
The dual-track agreement marks a significant diplomatic development between the world's two largest economies, which have spent years locked in escalating trade disputes and deepening technology rivalry. A reciprocal tariff reduction of this scale signals a mutual willingness to ease economic pressure, at least at the margins, even as broader structural tensions persist.
Read more Diesel Price Surge Could Raise Grocery and Clothing Costs →
The inclusion of an AI dialogue track is particularly notable. Artificial intelligence has emerged as one of the sharpest flashpoints in the US-China competition, with Washington imposing export controls on advanced semiconductors and Beijing accelerating its own domestic AI development. A formalized channel for discussion could help reduce the risk of miscalculation in a sector with profound economic and national-security implications.
Details on the timeline for implementing the tariff reductions, the specific categories of goods affected, and the structure of the AI talks were not immediately available from the foreign ministry's statement. Analysts will be watching closely to see whether the agreements translate into durable policy shifts or represent a more limited gesture aimed at stabilizing the bilateral relationship ahead of domestic political pressures in both countries.
Continue reading at Yahoo.
