Trump and Xi discuss $30B tariff rollback during Beijing summit to stabilise ties

President Donald Trump and Chinese President Xi Jinping opened talks in Beijing on May 14 with a narrower trade objective than the tariff rollbacks both sides once discussed. U.S. and Chinese officials have been weighing cuts on roughly $30 billion of imports on each side, according to Reuters, alongside a proposed mechanism for trade in non-sensitive goods. The talks come as broader ambitions for a sweeping reset have been constrained by legal and political limits in Washington. NBC News reported that Taiwan, Iran and security issues are also hanging over the summit. ### Why are Trump and Xi talking about only part of the tariff fight? Reuters reported on May 13 that the two governments were expected to focus on goods they could sell to each other “without crossing national security red lines,” rather than on a full dismantling of tariffs across the board. The proposal under discussion would cover about $30 billion in imports and could sit inside what Reuters described as a managed trade mechanism for non-sensitive goods. (usnews.com) Beijing entered the summit seeking more predictability in the commercial relationship, while Washington arrived with less room to bargain than in earlier rounds of the trade war. CNBC reported that tariffs, rare earths, Taiwan, Iran and artificial intelligence were all expected to be discussed during the two-day meeting. (usnews.com) ### What is this “managed trade” idea supposed to do? Reuters said U.S. officials had broached what it described as a “Board of Trade” concept to handle commercial differences and carve out a channel for lower-risk goods. The idea is not a return to unrestricted trade; it is a framework for identifying categories that both governments regard as commercially useful but not strategically sensitive. (cnbc.com) The goods under discussion have not been fully listed in public, but Reuters said the emphasis was on products that could move without triggering national security objections. That makes the talks less about headline tariff rates than about which sectors both capitals are willing to ring-fence from the wider strategic rivalry. (usnews.com) ### How did the U.S. trade court ruling change Trump’s leverage? The U.S. Court of International Trade ruled on May 7 that Trump’s 10% global import tariff imposed under Section 122 of the Trade Act of 1974 was unlawful, according to legal summaries published by Dorsey & Whitney and JD Supra. Those summaries said the court found the administration had exceeded the authority granted by the statute. (usnews.com) A federal appeals court later paused that ruling, allowing the tariffs to keep being collected while the case proceeds, according to reporting published on May 14. Even with that stay, the litigation has introduced uncertainty around one of Trump’s pressure tools and complicated any attempt to use broad tariff threats as a negotiating asset in Beijing. That assessment is an inference from the court actions and the timing of the summit. (dorsey.com) ### What else is crowding the summit agenda? NBC News reported that Trump arrived in Beijing with the U.S. conflict with Iran still active and with Taiwan high on China’s list of concerns. CNBC reported that Xi used the opening of the summit to raise Taiwan in pointed terms, while trade and security remained intertwined throughout the discussions. (achrnews.com) Radio Free Europe/Radio Liberty reported on May 14 that day-one talks covered Iran, trade and Taiwan, underscoring how little of the meeting is devoted to tariffs alone. That broader agenda helps explain why officials are discussing a limited trade package rather than trying to settle every dispute at once. ### What should readers watch on May 15? (nbcnews.com) The second day of the Beijing summit is scheduled for May 15, according to NBC News and CNBC, with trade, Taiwan, Iran, export controls and rare earths still in play. Any concrete outcome is likely to come in the form of a limited tariff list, a named mechanism for handling non-sensitive goods, or a joint statement setting out the next round of talks. (nbcnews.com) (rferl.org)