WASHINGTON — The United States and China have reached a reciprocal tariff agreement covering $30 billion worth of non-sensitive traded goods and agreed to establish a dedicated bilateral trade council to steer future economic talks, following a high-stakes three-day state visit by Chinese President Xi Jinping to Washington. The summit marked Xi’s first visit to the American capital since 2015 and included extensive bilateral negotiations with US President Donald Trump.
Under the arrangement, China will grant more favourable tariff treatment to American exports including agricultural commodities, timber, and cosmetics. In exchange, Chinese goods entering the American market, such as toys, holiday decorations, and small home appliances, will receive equivalent concessions. Beijing’s Ministry of Foreign Affairs noted that both administrations agreed to build on earlier framework talks held in Kuala Lumpur, institutionalizing discussions through the new trade council. The development follows an agreement to extend their mutual tariff truce by two months, giving negotiators until early next year to pursue a broader comprehensive trade settlement.
The trade feud between the world’s two largest economies dates back to 2018, when Washington initiated tariff tranches to counter longstanding intellectual-property disputes, state subsidies, and a widening bilateral trade deficit. Beijing retaliated with tariffs on American goods and instituted non-tariff curbs, such as export controls on strategic rare-earth elements. After tariff tensions flared again in 2025 with tit-for-tat duties, the recent negotiations reflect a concerted effort by both sides to de-escalate commercial frictions.
The summit was capped by a formal White House state dinner attended by senior government officials and top American corporate leaders, including Alphabet chief executive Sundar Pichai, Microsoft head Satya Nadella, Nvidia boss Jensen Huang, and OpenAI chief executive Sam Altman. During the banquet, both heads of state emphasized the necessity of strategic stability, with President Xi advocating “win-win cooperation” and cautioning that commercial competition between the two economic powers must be kept within manageable boundaries.
Beyond trade, the two nations agreed to establish a formal dialogue on advanced technology, choosing to employ the term “super intelligence” during bilateral exchanges. The technological framework includes a direct communication channel to coordinate during incidents involving artificial intelligence, with another session scheduled for November. Washington and Beijing also agreed on broader diplomatic items, resolving that international maritime transit corridors should remain free of unilateral tolls, while pledging reciprocal support as each nation prepares to host upcoming APEC and G20 leadership summits.
