China, US agree to AI dialogue, tariff cuts on $30 billion in goods during Xi visit
Tariff cuts on $30 billion of goods in each direction mark the clearest US-China breakthrough, as both sides also launch AI talks and an incident channel.
US President Donald Trump meets Chinese President Xi Jinping in the Oval Office at the White House in Washington on Sep 24, 2026. (Photo: Reuters/Evan Vucci)
SHANGHAI: The United States and China have agreed to reduce tariffs on $30 billion of goods and launch a dialogue on AI, both countries said following President Xi Jinping's visit to Washington.
The tariff reductions would apply to US exports such as agricultural goods, wood and cosmetics, as well as US imports including small appliances, toys, decorations, a White House statement said on Friday (Sep 25).
"The two countries reached consensus on recommendations for more favourable tariff treatment for $30 billion of non-sensitive goods in each direction," the White House said.
The three-day summit between Xi and President Donald Trump, which ended on Friday, showcased personal diplomacy rather than big public breakthroughs. Xi has since landed in Beijing, Chinese state news agency Xinhua reported on Saturday.
The two sides also agreed to set up a trade council and extend the outcomes of earlier talks in Kuala Lumpur, the Chinese Foreign Ministry said.
The agreement follows a move by the world's two largest economies to extend by two months a trade truce that had been due to expire on November 10, allowing more time to work on ‌a potentially bigger trade deal, US Treasury Secretary Scott Bessent said on Wednesday.
"This historic visit enriched the constructive and stable China-US relationship, upheld the overall stability of bilateral ties, opened a new chapter in China-US relations, and will have a far-reaching impact on world peace and development," Chinese Foreign Minister Wang Yi said in a statement.
DIALOGUE ON AI
On artificial intelligence, Trump said on Saturday that despite a "big talk" this week with Chinese President Xi Jinping on AI, the US should not join efforts with China on the technology.
"We had a big talk on SI," Trump told reporters at the White House.
"What they want to do is stop our progress because we're leading China by a lot, and we're going to keep it that way. We didn't spend that much time talking about it," he added.
Trump said he did not want to "integrate" AI initiatives with China because of US dominance.
The White House said that the leaders had agreed to use the term "super intelligence" in place of "artificial intelligence."
In a separate statement, the Chinese ministry said that Beijing valued Washington's use of the new term.
As AI technology continues to advance, the two sides should step up exchanges and work toward consensus in line with new developments, it said.
The two sides also agreed to support each other in hosting the Asia-Pacific Economic Cooperation leaders' meeting and the Group of 20 summit, with both leaders planning to attend the gatherings hosted by the other.
On foreign policy, the leaders agreed that Iran should fulfil its commitment not to develop nuclear weapons, and that no country or entity should impose transit tolls on international waterways, both countries said.
