U.S., China discuss $30B tariff rollback in repair talks ahead of Trump‑Xi summit

President Donald Trump and Chinese leader Xi Jinping met in Beijing on Thursday with trade officials from both sides discussing a limited rollback of tariffs on non-sensitive goods ahead of a broader effort to steady economic ties. The talks followed months of confrontation that cut deeply into bilateral commerce and pushed companies in both countries to rework supply chains. Reuters reported that officials were weighing a framework that could reduce barriers on roughly $30 billion of imports from each side under a new managed-trade mechanism. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met for about three hours in Incheon, South Korea, on Wednesday to prepare proposals for the leaders’ summit in Beijing, Reuters reported. The White House and Chinese government later described Thursday’s leader-level meeting as part of a wider push to improve communication on trade and other disputes, even as major issues remained unresolved. (usnews.com) ### How much tariff relief is actually under discussion? Reuters reported that U.S. and Chinese officials could identify about $30 billion worth of goods on each side for reduced tariffs or other trade barriers without crossing national-security red lines. The proposal centers on products both governments consider non-sensitive, rather than semiconductors, advanced technology or other sectors tied to export controls. (usnews.com) U.S. Trade Representative Jamieson Greer first described the idea in March as a possible “deliverable” for the summit, according to Reuters. Greer told Fox Business last week that Washington was no longer trying to force China to remake its state-led economic system, and instead was looking for ways to “optimize trade” between two different models. (usnews.com) ### What is the “managed trade” mechanism officials keep referring to? Reuters said the administration has discussed a so-called “Board of Trade” that would set numerical targets and carve out a basket of goods that can move with lower barriers. Four people familiar with the administration’s objectives told Reuters they expected a $30 billion-for-$30 billion framework to launch that mechanism, although it was not clear whether Trump and Xi themselves would name the goods in Beijing. (usnews.com) Wendy Cutler, a former U.S. trade negotiator who now heads the Asia Society Policy Center, told Reuters that both sides were “coalescing around” a $30 billion to $50 billion basket for lower tariffs or other barriers. Her description suggested the talks were focused on a narrow band of trade rather than a broad reset of the relationship. (usnews.com) ### Why are both governments talking about repair instead of a bigger deal? Associated Press reported that the summit was aimed primarily at repairing damage from the 2025 tariff war and keeping the economic relationship stable, with only modest policy announcements expected. AP said the two countries were likely to extend a trade truce reached in October and that China could announce purchases of U.S. soybeans, beef and Boeing aircraft. (usnews.com) Chad Bown of the Peterson Institute for International Economics told AP that average U.S. tariffs on China, after retreating from triple-digit levels reached last year, still stood at almost 48%. AP also reported that China’s share of total U.S. trade fell to 6.4% last year from more than 13% in 2016, underscoring how much commerce had already shifted elsewhere. (pbs.org) ### What did Trump and Xi say in Beijing? China’s Foreign Ministry said Xi told Trump on May 14 that the two countries should be partners rather than rivals and should deepen cooperation in trade, agriculture, tourism and communication channels. CNBC, citing Chinese and White House readouts, reported that the two sides discussed expanding market access for U.S. businesses in China and increasing Chinese investment into American industries. (pbs.org) Xi also used the meeting to deliver a warning on Taiwan. CNBC reported that he called Taiwan the “most important issue” in the bilateral relationship, while AP said few breakthroughs were expected on divisive subjects including technology, Taiwan and the Iran war. (mfa.gov.cn) ### What is still blocking a broader thaw? CNBC reported that analysts viewed the summit as an effort to build “managed stability,” not to resolve the underlying rivalry. Tianchen Xu, a senior economist at Economist Intelligence Unit, told CNBC that the meeting pointed to a period of managed stability with guardrails, while friction was still likely to persist. (cnbc.com) Reuters and AP both indicated that export controls, security-sensitive technologies and other strategic disputes remained outside the narrow tariff discussions. That means any tariff rollback under discussion would sit alongside broader restrictions that both governments still treat as central to national security. (cnbc.com) ### What happens next in Beijing? The White House and AP said Trump and Xi concluded their first formal meeting on Thursday morning after about two hours and were expected to continue the summit through Friday. AP reported that Trump was scheduled to leave just after midday on May 15 after a final private meeting with Xi, while a state banquet and additional talks were also on the agenda. (usnews.com 1) (usnews.com 2)