US and China Agree Tariff Cuts on $30 Billion of Goods and Launch AI Dialogue
The United States and China have reached an agreement to cut duties on $30 billion worth of goods and to begin talks on artificial intelligence, the two nations announced after President Xi Jinping’s trip to the US.
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According to a White House statement, the reductions will cover American exports such as farm products, timber and beauty items, as well as American imports including compact appliances, playthings and ornamental goods. The White House said both sides found common ground on proposals for preferential tariff treatment covering $30 billion of non-sensitive merchandise flowing in each direction.
The three-day gathering between Mr Xi and US President Donald Trump, which wrapped up on Friday, served mainly as an exercise in mutual diplomacy but did produce certain breakthroughs.
The Chinese Foreign Ministry said the two governments agreed to create a trade council and to prolong the results of prior negotiations in Kuala Lumpur.
The deal came after the world’s two biggest economies decided to push back by two months a trade truce that had been scheduled to lapse on November 10, creating additional room to pursue a potentially more substantial agreement, according to US Treasury Secretary Scott Bessent.
Chinese Foreign Minister Wang Yi called the visit historic, stating that it strengthened the constructive and stable China-US relationship, preserved the overall steadiness of bilateral ties, inaugurated a new phase in China-US relations, and would carry a profound influence on global peace and development.
Regarding AI, both sides agreed to conduct dialogue about the technology’s dangers and advantages, with the following round of talks planned for November, and to create a communication channel for AI-related incidents, per the Chinese Foreign Ministry and the White House. The White House said the leaders agreed to adopt the phrase super intelligence rather than artificial intelligence. The Chinese Ministry said Beijing appreciated Washington’s use of the new terminology. As AI technology keeps progressing, the two sides should intensify exchanges and strive for consensus in accordance with new developments, the statement said.
The US and China also agreed to back each other in hosting the Asia-Pacific Economic Co-operation leaders meeting and the Group of 20 summit, with both leaders intending to attend the gatherings hosted by the other.
On foreign policy, the leaders agreed that Iran should honour its pledge not to develop nuclear weapons, and that no nation or entity should levy transit tolls on international waterways.
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