US and China Reach Landmark Agreement on Tariff Cuts and AI Dialogue Following Xi-Trump Summit

The US and China have agreed to reduce tariffs on $30 billion worth of goods and initiate discussions on artificial intelligence, following a high-level visit by President Xi Jinping to the US.

According to a White House statement, the tariff reductions will affect US exports such as agricultural goods, wood, and cosmetics, alongside US imports including small appliances, toys, and decorations. The White House noted that both nations reached a consensus on recommending more favourable tariff treatment for $30 billion of non-sensitive goods in each direction.

The three-day summit between Mr Xi and US President Donald Trump concluded on Friday. While largely diplomatic, the meeting yielded notable breakthroughs. The Chinese Foreign Ministry stated that the two sides agreed to establish a trade council and extend the outcomes of prior talks held in Kuala Lumpur.

US Treasury Secretary Scott Bessent explained that the agreement follows the decision by the world's two largest economies to extend a trade truce by two months—preventing its expiration on November 10—to allow additional time for negotiating a potentially larger deal.

Chinese Foreign Minister Wang Yi described the historic visit as an event that enriched the constructive and stable China-US relationship, upheld bilateral stability, opened a new chapter, and will deliver a far-reaching impact on world peace and development.

Regarding artificial intelligence, the Chinese Foreign Ministry and the White House announced that both nations agreed to conduct dialogue regarding the risks and benefits of the technology, with the next round of discussions scheduled for November. They also agreed to establish a communication channel for AI-related incidents.

Notably, the White House stated that the leaders agreed to adopt the term "super intelligence" as a replacement for "artificial intelligence," a change valued by the Chinese Ministry. The statement emphasized that as AI technology continues to advance, both sides must increase exchanges and build consensus in response to new developments.

Furthermore, the US and China agreed to support 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 respective gatherings hosted by the other. In foreign policy discussions, the leaders agreed that Iran must fulfill its commitment to refrain from developing nuclear weapons and that no country or entity should impose transit tolls on international waterways.