USA-CHINA TARIFF CUTS AGREED AT XI STATE VISIT

USA-China Tariff Cuts And AI Dialogue Agreed At Washington Summit

The United States of America (hereinafter: USA) and China have agreed to reciprocal tariff cuts covering approximately $30 billion worth of goods on each side, following a three-day state visit by Chinese President Xi Jinping to Washington that concluded on 26 September 2026. The two governments also announced a framework for dialogue on artificial intelligence, according to statements from both sides. The visit marked the first state-level reception of a Chinese leader in Washington at this ceremonial scale in decades, with President Donald Trump extending a formal welcome that multiple outlets described as the most elaborate extended to a foreign leader since 1962.

Scope And Structure Of The Tariff Agreement

The USA's President's Office released a list of goods subject to the reductions, which spans 77 categories of Chinese imports into the USA, including small appliances, toys, Christmas decorations and fireworks, alongside 1.619 categories of North American goods imported into China, covering agricultural products, wood and cosmetics (The Hill). Reporting from Foreign Policy noted that the cuts apply to $60 billion worth of goods in aggregate across both states' lists, while CBC News and TRT World cited a figure of $30 billion, reflecting the value of goods covered on a reciprocal basis per side (Foreign Policy). Approximately 90% of products covered under the agreement will face most-favoured-nation tariff rates, according to TRT World (TRT World). Foreign Policy noted that soybeans, a significant USA agricultural export, were not included in the agreement.

The tariff reductions were accompanied by agreements on trade, agriculture, investment and artificial intelligence cooperation, according to TRT World. Chinese Foreign Minister Wang Yi described the visit as bringing "fresh progress in China-USA strategic stability" and stated that reciprocity in the relationship means equal sovereignty without hegemony or coercion. The two governments also agreed to extend an existing tariff truce through January, a measure that had been in place prior to the summit, according to LiveMint (CBC News).

Ceremonial Dimensions Of The Xi Visit

Xi Jinping arrived in Washington on 24 September 2026 for a three-day visit that included a formal state dinner, bilateral talks at the President's Office and a concluding tour of the National Archives, where Trump accompanied Xi to view the Declaration of Independence, the Constitution and the Bill of Rights (Deutsche Welle). In a written statement delivered upon his arrival, Xi said that China and the USA "should be partners, not rivals", a formulation he repeated in remarks at the President's Office arrival ceremony, where he also stated that "the Thucydides Trap can be overcome" (CGTN). Trump, for his part, described the relationship as "a truly great friendship, actually, built on mutual respect." Xi confirmed at the close of the visit that he expects to meet Trump two more times before the end of 2026.

The visit was notable for the composition of the business delegations present. North American chief executives attended in significant numbers, while Chinese corporate counterparts were largely absent, a contrast that the New York Times attributed to the changed state of bilateral business ties over the preceding decade. Reports from multiple outlets characterised the summit overall as heavy on ceremony and limited in concrete policy output beyond the tariff and AI announcements, with no agreements reached on Taiwan, technology export controls or other longstanding points of contention.

Arms Sale Denial

On the margins of the summit, reports emerged suggesting that Trump had raised the possibility of USA arms sales to China during the talks. Trump denied making any such offer when questioned in front of cameras, according to Handelsblatt and Die Zeit. Neither government issued a formal statement confirming or elaborating on the reported exchange, and the matter did not feature in the official joint communiqué.

AI Dialogue And Remaining Disputes

The agreement to open a bilateral dialogue on artificial intelligence was confirmed by both governments following the summit. No specific institutional structure, timeline or agenda for the AI dialogue was publicly detailed in the statements available at the time of publication. CBS News reported that no deal on artificial intelligence was announced during the visit itself, suggesting the dialogue framework represents a commitment to future negotiation rather than a concluded agreement. Technology controls, including export restrictions on advanced semiconductors, were not addressed in the published outcomes of the summit.

The summit produced no announced movement on Taiwan, which remains the most structurally sensitive issue in USA-China relations. Trump confirmed during the visit that he discussed the Iran situation with Xi, though no joint position or statement on that matter was published. The absence of breakthroughs on these issues was noted across multiple outlets, including the National Post, PBS NewsHour and France 24, which described the visit as producing little substantive policy progress beyond the tariff and dialogue announcements.

What Comes Next

The most immediate procedural outcome of the summit is the extension of the tariff truce through January, which provides a defined window for further trade negotiations before existing tensions could resume. Xi's confirmation that he and Trump will meet twice more before the end of 2026 indicates that the two governments intend to maintain a structured diplomatic calendar rather than allowing the relationship to revert to the pattern of escalation and ad hoc de-escalation that characterised earlier years. The AI dialogue framework, if it proceeds to formal sessions, would represent the first structured bilateral mechanism on that subject between the two states. The exclusion of soybeans from the tariff agreement leaves a significant agricultural trade issue unresolved, and the absence of any movement on semiconductor export controls means the technology dimension of the bilateral relationship remains contested. The next scheduled meetings between the two leaders will be the primary occasions at which progress on these outstanding matters could be assessed.