US, China Agree to Cut Tariffs on $30 Billion of Goods, Set Up AI Consultative Body

The United States and China agreed to cut tariffs on $30 billion of goods and expand cooperation in artificial intelligence.

Reuters reported on September 26 that the agreement was reached at a summit held during Chinese President Xi Jinping’s visit to the US. The White House said the two sides also agreed to apply preferential tariff rates to $30 billion of goods each country exports to the other.

The tariff cuts cover US exports to China including agricultural products, timber and cosmetics. Reduced tariffs will also apply to Chinese exports to the US including small household appliances, toys and decorative items. The two sides also agreed to establish a trade council and build on progress made in earlier trade talks in Kuala Lumpur.

The agreement came after the two countries decided to extend their existing trade truce by two months. Earlier, US Treasury Secretary Scott Bessent said the truce, which had been due to expire on November 10, would buy more time for negotiations toward a broader trade deal.

The two sides will also expand cooperation in AI. They agreed to create a consultative body to discuss the risks and benefits of AI technology and hold a follow-up meeting in November. They also plan to establish a separate communication channel for rapid contact in the event of AI-related incidents. The White House said the two leaders also agreed to use the term “super intelligence” instead of “AI.”

The leaders also confirmed a shared position on diplomatic and security issues. They agreed that Iran must honor its commitment not to develop nuclear weapons and that no country or group should charge transit fees to ships passing through international waterways.

Xi returned to Beijing after the three-day summit ended on September 25. The two countries also agreed to attend each other’s upcoming Asia-Pacific Economic Cooperation, or APEC, summits and Group of 20, or G20, summits, and to support the hosting of those events.