Beijing summit: Trump and Xi signal $30B in tariff cuts to stabilise trade

President Donald Trump and Chinese President Xi Jinping used their Beijing summit on Thursday to signal that Washington and Beijing are exploring limited tariff cuts after last year’s trade war disrupted commerce between the world’s two largest economies. Officials and analysts described the talks as an effort to put guardrails around a relationship still strained by disputes over Taiwan, technology controls, rare earths and the war involving Iran. The two sides have not announced a broad rollback of tariffs, and existing duties remain in place while negotiators work through narrower trade arrangements. A White House official and Chinese government readouts pointed instead to a managed approach focused on specific sectors and follow-up talks. ### What, exactly, are Trump and Xi discussing on tariffs? Reuters reported on May 13 that the two governments are weighing tariff cuts on roughly $30 billion of imports as part of a managed-trade arrangement for non-sensitive goods. The proposal, as described ahead of the summit, would ease duties on a limited set of products rather than unwind the tariff structure built during last year’s escalation. CNBC reported that trade envoys led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng held a preparatory meeting in Seoul on Wednesday and that Xi later described those talks as producing “overall balanced and positive outcomes.” Beijing said the two sides should preserve that momentum, while a White House official told CNBC that Trump and Xi discussed ways to expand market access for U.S. businesses and increase Chinese investment into American industries. ### Why are the cuts being framed as limited rather than broad? CNBC reported that the summit agenda extends well beyond tariffs to Taiwan, rare earths, artificial intelligence and the Iran war, leaving little sign that either side is ready for a sweeping reset. Xi told Trump the two countries should build a “constructive China-U.S. relationship of strategic stability,” according to Beijing’s official English readout cited by CNBC, but the same report said frictions are expected to persist. (cnbc.com) Kyle Chan of the Brookings Institution told CNBC before the meeting that Trump and Xi wanted to “reconfirm their relationship and have that kind of stability.” James Zimmerman, chairman of AmCham China, told CNBC that “it makes no sense for the two countries to engage in trade wars or tit for tat,” but he was speaking about stabilization, not a full removal of trade barriers. (cnbc.com) ### Which goods and businesses are most likely to feature in any deal? Trump arrived in Beijing with executives including Tesla’s Elon Musk and Nvidia’s Jensen Huang, according to CNBC, underscoring the commercial focus of part of the trip. CNBC also reported that the Trump administration had signaled interest in larger Chinese purchases of American soybeans, Boeing aircraft and other goods, while Sen. (cnbc.com) Steve Daines said he hoped to see deals involving “Boeing, beef and beans.” Xi said Beijing welcomed deeper commercial engagement from the United States and that “China’s door to opening up will only open wider,” according to CNBC’s account of the summit readout. CNBC also reported that China expressed interest in purchasing more U.S. oil as it looks to reduce reliance on Middle Eastern crude. (cnbc.com) ### What is still blocking a bigger trade settlement? Taiwan remained at the center of China’s political message in Beijing. CNBC reported that Xi called Taiwan “the most important issue” in the bilateral relationship and used some of his strongest language of the summit on that subject. Rare earth export controls, technology restrictions and the wider security agenda also remain active points of conflict. (cnbc.com) The Iran war has also complicated the summit. CNBC reported before the meeting that the agenda had originally been set for March and was delayed after Washington became embroiled in the conflict, which has disrupted energy markets and added pressure to talks already crowded with trade and security disputes. (cnbc.com) ### What does this leave companies and investors watching next? Markets and exporters are looking for the text of any tariff relief and for signs that follow-up talks will produce sector-specific purchase commitments. CNBC reported that investors were already treating the summit as a possible extension of the trade truce, while analysts told the network that any improvement would more likely amount to “managed stability” than a clean settlement. (cnbc.com) Friday’s schedule in Beijing offers the next checkpoint. CNBC reported that Trump is due to hold tea and a working lunch with Xi before departing China, and Trump has also signaled that he wants Xi to visit Washington later in 2026. (cnbc.com 1) (cnbc.com 2)