U.S. and China weigh $30bn tariff cuts in Beijing talks

U.S. President Donald Trump and Chinese President Xi Jinping opened a two-day summit in Beijing on Thursday with trade officials weighing a limited package of tariff cuts and a managed channel for non-sensitive goods. Reuters reported ahead of the meeting that both sides were considering reductions on roughly $30 billion of imports each, a step framed by officials as a way to reduce damage from the tariff war rather than to reset the broader relationship. AP reported that the trade conflict had pushed bilateral commerce into a sharp decline, forcing companies on both sides to rework supply chains and sourcing. CNBC said analysts expected the meeting to focus on “stabilization” of ties, with disputes over Taiwan, technology and security still constraining any wider rapprochement. ### Which tariffs are the two sides discussing? Reuters reported that U.S. and Chinese officials were considering identifying about $30 billion worth of goods on which each side could lower tariffs without crossing national security red lines. The discussions centered on products that could still move under a more structured framework, rather than a broad rollback of duties imposed during years of trade conflict. (usnews.com) The proposed mechanism, described by Reuters as a “managed trade” push and referred to in the report as a possible “Board of Trade,” would cover non-sensitive goods. Reuters said the idea was to create a channel for items both governments were prepared to keep trading even as restrictions remained in place on more strategic sectors. (usnews.com) ### Why are Trump and Xi pursuing a narrower deal? AP reported that the tariff war had sent U.S.-China trade into a “freefall,” creating pressure on companies and policymakers to limit further economic damage. That pressure has pushed both governments toward smaller, targeted fixes instead of a sweeping settlement, according to the AP account of the talks. (usnews.com) CNBC reported that analysts did not expect a full reconciliation from the Beijing summit. The network said the likely outcome was a narrower effort to stabilize commerce and preserve communication on trade while leaving deeper disputes unresolved. ### What else is on the table in Beijing besides tariffs? Xi Jinping used the opening of the summit to press Trump on Taiwan, according to NPR and CNBC, underscoring that the issue remains central to the broader relationship. (apnews.com) CNBC reported that Iran, artificial intelligence and rare earths were also expected to feature in the talks, alongside tariffs and export controls. (cnbc.com) Reuters separately reported earlier this week that the two sides were also weighing an extension of a truce over Chinese rare earth export curbs, even as Chinese customs data indicated shipments remained constrained. That placed trade relief talks alongside a wider set of negotiations over strategic materials and technology restrictions. (npr.org) ### How much room is there for a broader reset? CNBC said analysts saw the summit as an attempt to put guardrails around a difficult relationship, not to erase the underlying rivalry. Taiwan, security concerns and technology controls were cited by analysts and reporters as limits on how far either leader could go in recasting ties. (money.usnews.com) AP reported that even where both governments want to restore some trade flows, the political and strategic disputes that drove the tariff war remain in place. That leaves any tariff reductions vulnerable to the wider state of the relationship. ### What should readers watch next? The Beijing summit runs through Friday, May 15, and any concrete trade outcome is likely to emerge in statements from the White House, China’s foreign ministry or commerce authorities after the leaders’ meetings. (cnbc.com) Reuters reported that the most immediate marker would be whether officials formally identify the goods eligible for tariff relief or announce a managed framework for non-sensitive trade. (apnews.com) CNBC and AP both indicated that any announcement on tariffs would land alongside readouts on Taiwan, rare earths and other security-linked issues. Those official statements, if issued on May 15, will show whether the Beijing talks produced a limited trade package or only an agreement to keep negotiating. (cnbc.com) (usnews.com)