Beijing talks: Trump and Xi discuss $30B in tariff cuts

President Donald Trump and Chinese President Xi Jinping opened talks in Beijing on Thursday with trade officials on both sides weighing a narrower deal built around selected tariff cuts and commercial purchases. Reuters reported ahead of the meeting that negotiators were discussing relief on roughly $30 billion of imports that both countries could trade without crossing national-security red lines. (usnews.com) Boeing aircraft purchases were also under consideration as a possible deliverable, according to Reuters, alongside a framework focused on numerical trade targets rather than a broader rewrite of China’s economic model. Beijing was Trump’s first trip to China since 2017, and the summit came after months of strain over tariffs, export controls and market access. (usnews.com) Reuters said Trump arrived on Wednesday with a delegation that included business leaders such as Nvidia Chief Executive Jensen Huang and Elon Musk, underscoring the commercial stakes around the visit. ### Why are the talks centered on only part of the trade relationship? (usnews.com) Reuters said the proposal under discussion would cover non-sensitive goods rather than the full range of U.S.-China trade. The report described the effort as a “managed trade” mechanism that would leave in place broader tariffs and export controls tied to sensitive technologies and security concerns. (usnews.com) U.S. Trade Representative Jamieson Greer had previewed that approach in March, calling a so-called “Board of Trade” a key deliverable for the summit, Reuters reported. Greer told Fox Business Network last week that Washington was not trying to make China change how it governs or manages its economy, but to find areas where the two sides could “optimize trade” and achieve more balance. (economictimes.indiatimes.com) ### What does the $30 billion figure refer to? The $30 billion figure refers to goods that each side could identify for tariff reductions and expanded sales without breaching national-security limits, according to Reuters. The report said the list had not been finalized and described the plan’s contours as still sketchy. (usnews.com) That makes the number less a signed package than a working target for negotiators. Reuters said the talks were aimed at non-strategic sectors, with the United States no longer demanding that Beijing move toward a more U.S.-style consumer-driven model as a condition for progress. ### Why are Boeing planes part of the discussion? (usnews.com) Boeing was being discussed because aircraft orders offer a large, visible purchase that can be counted quickly in bilateral trade totals. Reuters said possible Boeing purchases were among the symbolic commercial wins under consideration as both governments looked for steps that could be announced publicly. Aircraft deals have long featured in U.S.-China diplomacy because they combine industrial, employment and prestige value. (usnews.com) In this case, Reuters framed the possible purchases as part of a narrower package meant to show movement even while deeper disputes over technology and security remain unresolved. ### Who set up the leaders’ meeting? Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met for about three hours in Incheon, South Korea, on Wednesday to prepare economic proposals for the Beijing summit, Reuters reported. China’s Xinhua news agency described those talks as “candid, in-depth and constructive,” according to a separate Reuters dispatch on Trump’s arrival. (usnews.com) Guo Jiakun, a spokesperson for China’s foreign ministry, said Beijing was ready to “expand cooperation, manage differences and inject more stability and certainty into the turbulent world,” Reuters reported. Trump, in a Truth Social post cited by Reuters, said he would ask Xi to “open up” China to U.S. business. (usnews.com) ### What should readers watch next? Thursday’s Beijing sessions were expected to test whether negotiators could turn the managed-trade concept into a defined list of tariff cuts and purchases. Reuters reported that the summit discussions would cover trade as well as other issues including Iran and Taiwan, but the economic package was one of the clearest potential deliverables going in. (usnews.com) Any next step is likely to come in the form of a joint statement, leader remarks or follow-up negotiations led by Bessent, Greer and He Lifeng. As of Reuters’ May 13 and May 14 reports, the proposed tariff relief and Boeing purchases were still under discussion rather than finalized. (usnews.com) (economictimes.indiatimes.com) (brecorder.com)