Trump and Xi discuss potential tariff cuts in Beijing meeting

President Donald Trump and Chinese President Xi Jinping opened a two-day summit in Beijing on Thursday with tariffs, Taiwan, Iran and technology restrictions on the agenda, according to Reuters, PBS and CNBC. U.S. and Chinese officials entered the meeting looking for limited trade steps after a 2025 tariff fight that sharply cut commerce between the world’s two largest economies. Reuters reported the two sides were discussing possible tariff reductions on about $30 billion of imports and a mechanism for trade in goods that do not touch national-security red lines. Analysts cited by CNBC and NPR said the talks were more likely to produce stabilization than a broad reset in economic ties. ### What exactly is under discussion on tariffs? Reuters reported on May 13 that U.S. and Chinese officials were weighing tariff cuts on roughly $30 billion of imports. The same report said the talks included a managed-trade mechanism for non-sensitive goods, aimed at allowing some commerce to resume without crossing security limits set by either government. (ca.finance.yahoo.com) The proposed arrangement would not amount to a full rollback of the tariff structure built during Trump’s second-term trade campaign. Reuters said the focus was narrower: identifying categories of goods both sides could trade with lower duties while keeping restrictions on items tied to strategic sectors. (usnews.com) ### Why are Trump and Xi talking about a narrower trade deal instead of a broader one? Associated Press, in a report carried by PBS, said the 2025 tariff war sent U.S.-China trade into a “freefall” and forced companies on both sides to regroup. The report said both governments were now trying to repair some of the damage after showing how much economic pain they could inflict on each other. (usnews.com) Peterson Institute economist Chad Bown wrote in April that Trump had raised tariffs on China by 145 percentage points by April 2025, underscoring how steep the escalation became before the current talks. That helps explain why officials are discussing a more limited framework first rather than trying to negotiate a full settlement at once. (pbs.org) ### Which issues beyond trade are shaping the meeting? Reuters reported on May 14 that Trump went into the Beijing meetings seeking economic gains while also managing disputes over the Iran war and U.S. arms sales to Taiwan. CNBC likewise said tariffs and rare earths were only part of a broader summit agenda that included Taiwan, Iran and artificial intelligence. (piie.com) NPR reported on May 14 that Xi used the summit to warn Trump over Taiwan, calling it the most important issue in the relationship. That means even a limited tariff understanding would sit alongside unresolved security disputes that both governments still rank as central. ### What are companies and investors watching for? CNBC reported in April that one year after Trump’s “Liberation Day” tariffs, companies in retail, autos and other sectors were still reworking how they model policy and supply-chain risk. (ca.finance.yahoo.com) NPR reported on May 13 that manufacturers in China were also trying to diversify markets after the tariff shock. (npr.org) Those reports suggest businesses are watching less for a grand bargain than for practical signals on what goods may move more easily, what tariffs might come down and whether the two governments can keep future restrictions from widening again. That is an inference drawn from the reporting on current negotiations and corporate responses. (cnbc.com) ### What should readers watch next? May 15 is the next immediate marker because the Beijing summit is scheduled to continue through Friday, according to Reuters and CNBC. Any joint statement, tariff list or announcement on a non-sensitive-goods mechanism would provide the clearest evidence of whether the talks produced a concrete trade step. (usnews.com) Reuters said the officials’ discussions were centered on a defined pool of imports rather than the full trade relationship. If either side releases details, the most important specifics will be the product categories covered, the size and timing of any tariff cuts, and which U.S. and Chinese officials are assigned to carry the talks forward after the summit. (usnews.com) (ca.finance.yahoo.com)