Scott Bessent discusses trade and AI ahead of Trump-Xi summit
High-stakes discussions on trade and artificial intelligence unfold in New York City as Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer meet with Chinese officials. Fox News contributor Dan Hoffman analyzes this strategic framework between the world’s two most powerful nations ahead of the upcoming summit with President Donald Trump and Xi Jinping.
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The United States and China agreed to lower tariffs on $30 billion worth of goods traded between the two countries following a three-day summit between President Donald Trump and Chinese President Xi Jinping in Washington, D.C.
According to the White House, the $30 billion in reciprocal tariff reductions apply to “non-sensitive goods.”
U.S. exports including agricultural products, fish and seafood, logs and wood products, cosmetics and medical devices will receive favorable tariff treatment in China. Meanwhile, U.S. imports of Chinese-made small appliances, toys, holiday decorations and children’s car seats will also receive preferential treatment.
The agreement was reached through the U.S.-China Board of Trade, a body first proposed during Trump’s visit to China in May and formally established during Xi’s visit to Washington this week.
President Donald Trump welcomes Chinese President Xi Jinping to speak during a state dinner in the East Room of the White House on Sept. 24, 2026 in Washington, D.C. (Kevin Dietsch/Getty Images)
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U.S. Trade Representative Jamieson Greer told CNBC on Friday that “a lot more details” about the new trade agreement will be released on Monday.
Greer said the tariff terms were hammered out after weeks of negotiations. Neither country has released the final tariff rates or all the products that will receive favored status going forward.
This marks one of the most significant cooldowns in the trade war Trump launched against China in February 2025, when he levied a 10% tariff on all Chinese imports, citing Beijing’s alleged role in the fentanyl crisis and illegal immigration. China hit back with levies on U.S. coal, liquefied natural gas, crude oil and cars.
President Donald Trump holds up a tariff chart while speaking during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, D.C. (Chip Somodevilla/Getty Images)
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At their peak, U.S. tariffs on Chinese goods reached a staggering 145% in April 2025, shortly after Trump unveiled his “Liberation Day” reciprocal tariffs. China responded with tariffs of up to 125% on U.S. goods.
U.S. and Chinese negotiators met in Geneva in May 2025 and agreed to a 90-day truce that lowered U.S. tariffs to 30% and China’s to 10%. The agreement was extended for another 90 days in August.
President Donald Trump walks on a red carpet after greeting Chinese President Xi Jinping during an arrival ceremony on Sept. 23, 2026, at Joint Base Andrews in Maryland. (Chip Somodevilla/Getty Images)
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Trump and Xi reached another tentative agreement during talks in South Korea in October 2025. Under the deal, China agreed to crack down on fentanyl precursors, resume purchases of U.S. soybeans and ease restrictions on rare-earth exports, while the United States agreed to further ease tariffs.
The two countries will now use the Board of Trade to negotiate additional tariff reductions and other trade disputes, leaving open the possibility of broader agreements in the months ahead.