US and China discuss $30 billion in tariff cuts ahead of Trump-Xi summit

Washington and Beijing are quietly hashing out reciprocal tariff reductions worth roughly $30 billion per side, setting the table for a September meeting between President Trump and President Xi Jinping that could reshape the trajectory of the world’s most consequential trade relationship.

The discussions focus on what trade negotiators call “non-sensitive” goods. Think US agricultural and energy exports heading east, and Chinese manufacturing inputs heading west.

What’s on the table

Huang Ling, a spokesperson for China’s Commerce Ministry, said on September 10 that the goal is to implement reductions “at an early date.”

The talks build on a framework hammered out during the May 2026 Beijing summit, where the two sides established enough common ground to keep the broader trade truce intact. That truce, reached in October 2025 after months of escalating economic tension, doesn’t expire until November 10, 2026.

The next inflection point arrives September 24, when Trump and Xi are scheduled to meet in Washington. This will represent the third in-person dialogue between the two presidents within a year.

Bilateral trade between the two countries has already exceeded $400 billion in the first eight months of 2026.

Why $30 billion matters more than it sounds

Thirty billion dollars in tariff relief, applied to each country’s goods, is roughly 7-8% of the bilateral trade recorded so far this year.

The focus on non-sensitive goods is strategic. By carving out items that won’t trigger national security objections, negotiators can demonstrate momentum without wading into semiconductor restrictions, EV tariffs, or technology transfer disputes. Both sides also committed during the May summit to establishing parallel Boards of Trade and Investment to facilitate handling of non-sensitive goods and investment matters without delving into more contentious national-security issues.

The bigger picture for markets

Analysts tracking the negotiations suggest that the September summit’s outcome could serve as a leading indicator for how the two countries approach the November 2026 truce expiration. A successful tariff reduction package would build institutional momentum toward renewal.

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