US and China Agree to AI Talks and Tariff Cuts During Xi Visit

The United States and China have agreed to reduce tariffs on $30 billion of goods and launch a formal dialogue on artificial intelligence following a three-day summit in Washington, both countries announced on Friday, September 25, 2026. The bilateral agreement addresses tariff cuts for non-sensitive items and establishes new communication channels to manage technological risks between the world’s two largest economies.

Did You Know? During their three-day summit at the White House, President Donald Trump and President Xi Jinping agreed to officially utilize the term “super intelligence” rather than “artificial intelligence” in their bilateral discussions, a naming choice that Beijing stated it deeply values.

Tariff Reductions and Trade Council Structure

The White House confirmed that the newly negotiated tariff cuts will apply symmetrically to $30 billion of non-sensitive goods in each direction. For American exporters, the favorable tariff treatment covers agricultural goods, wood, and cosmetics. Conversely, the reductions apply to U.S. imports from China that include small appliances, toys, and decorations.

This tariff agreement builds directly upon a recent decision by both nations to extend an existing trade truce by two months, moving the expiration date past November 10 to allow negotiators more time to draft a broader trade deal, according to U.S. Treasury Secretary Scott Bessent. Alongside the tariff adjustments, the Chinese Foreign Ministry announced that the two governments will establish a trade council and carry forward the outcomes of earlier discussions held in Kuala Lumpur.

Artificial Intelligence Dialogue and Security Protocols

Beyond traditional commerce, the summit yielded concrete diplomatic frameworks for managing emerging technology. Both the White House and the Chinese Foreign Ministry verified that the two nations will convene a formal dialogue focused on the risks and benefits of super intelligence, with the initial round of talks scheduled for November.

US and China Agree to AI Talks and Tariff Cuts During Xi Visit
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To prevent escalations, the governments agreed to set up a dedicated communication channel specifically for handling AI-related incidents. Chinese officials emphasized that as the technology continues to evolve, both nations must actively increase bilateral exchanges to work toward shared consensus on emerging digital challenges.

Multilateral Cooperation and Foreign Policy Alignment

The eight-point consensus also addresses major international gatherings and foreign policy matters. Both leaders committed to mutual support for upcoming international summits, planning to attend both the Asia-Pacific Economic Cooperation (APEC) leaders’ meeting and the Group of 20 (G20) summit hosted by the other country.

According to official statements from both capitals, Washington and Beijing agreed that Iran must fulfill its standing commitments to refrain from developing nuclear weapons. The leaders also declared that no individual country or entity should impose transit tolls on international waterways.

Frequently Asked Questions

What specific goods are covered under the new $30 billion tariff reduction?
According to the White House, U.S. exports benefiting from the cuts include agricultural goods, wood, and cosmetics. U.S. imports from China include small appliances, toys, and decorations.

China, US agree to $30 billion tariff cut, AI dialogue during Xi visit, Beijing says - CNBC TV18
Photo: cnbctv18.com

When will bilateral talks regarding artificial intelligence resume?
The next round of formal discussions focusing on the risks and benefits of super intelligence is scheduled to take place in November.

What multilateral summits do President Trump and President Xi plan to attend?
Both leaders intend to support and attend upcoming international gatherings hosted by each other, specifically the Asia-Pacific Economic Cooperation leaders’ meeting and the Group of 20 summit.

How might the newly established trade council and AI communication channels alter future negotiations between Washington and Beijing?

China, U.S. agree on $30 billion tariff cut and AI dialogue

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