U.S. and China weigh targeted $30bn tariff cuts in Beijing talks, Reuters reports

U.S. and Chinese officials are discussing a narrower tariff rollback that would cover roughly $30 billion of imports rather than a broad dismantling of the trade barriers built over years of confrontation, according to a Reuters report published on May 13. The talks in Beijing have also reached beyond tariffs into rare-earth exports, Iran and U.S. arms sales to Taiwan, giving the negotiations a wider strategic frame, Reuters reported. President Donald Trump and Chinese President Xi Jinping were meeting in Beijing on May 13 and May 14 amid a trade truce that already lowered some tariff rates but left much of the earlier structure in place. Official U.S. records show Washington suspended some heightened duties for 90 days in May 2025, while older Section 301 tariffs remained on the books. ### Why are officials talking about just $30 billion, not a full rollback? The Reuters report said the two sides are weighing targeted tariff cuts on about $30 billion of goods and a managed mechanism for trade in non-sensitive products. That points to a selective approach: reduce friction where both governments can tolerate it, while preserving barriers around sectors tied to industrial policy, technology or national security. (whitehouse.gov) May 12, 2025, is the key date for the current baseline. A White House executive order issued that day said the United States was modifying reciprocal tariff rates after discussions with China, describing those talks as a “significant step” toward addressing U.S. economic and national security concerns. That order did not erase the broader tariff architecture created earlier, and USTR’s Section 301 page shows the older China tariff lists remain part of the trade framework. (cfr.org) ### What tariffs are still in place now? The 90-day truce announced in May 2025 cut the most escalated reciprocal rates sharply, with outside reporting at the time saying U.S. tariffs on many Chinese goods fell to 30% and Chinese tariffs on many U.S. goods fell to 10%. But the White House order and USTR materials indicate that was a modification layered onto existing measures, not a clean reset to pre-trade-war conditions. (whitehouse.gov) 2018 remains the starting point for much of the tariff structure. The Council on Foreign Relations said in a May 13, 2026 backgrounder that Trump’s first-term tariffs were largely kept by President Joe Biden, then increased again during Trump’s second term, while China answered with its own levies and export controls on rare earths and other materials. ### Why are rare earths, Taiwan and Iran in the same conversation? (cnbc.com) Rare earths matter because China has leverage over supply chains for materials used in advanced manufacturing, defense systems and electronics. CFR said rare-earth restrictions and tech export controls remain central pressure points in the relationship, even as both sides pursue trade de-escalation. (cfr.org) Taiwan and Iran widen the talks beyond customs duties. Reuters reported that U.S. arms sales to Taiwan and Iran were also under discussion in Beijing, suggesting that each side is trying to link economic concessions with broader security concerns rather than treating trade as a standalone file. ### What does “managed trade” mean in practice? The Reuters description of a mechanism for non-sensitive goods suggests a system in which both governments would channel relief toward products judged commercially useful but strategically tolerable. (cfr.org) That would fit a pattern already visible in U.S. policy: keep pressure on sectors Washington views as security-sensitive while allowing narrower carve-outs elsewhere. Jamieson Greer, the U.S. trade representative, has continued to frame trade policy around industrial capacity and supply-chain resilience. USTR’s 2026 press materials show the agency is still pursuing Section 301 cases and critical-minerals initiatives with other partners, underscoring that tariff relief with China would sit alongside, not replace, a broader strategy of selective protection. (whitehouse.gov) ### What should readers watch next? May 14, 2026, is the immediate next marker because that is the second day of the Trump-Xi meeting in Beijing, according to CFR. Any concrete tariff action would most likely appear in a White House order, a USTR statement, a Chinese ministry readout or a joint statement after the leaders’ talks conclude. (cfr.org) (ustr.gov)