US and China Outline Tariff Relief and Launch AI Dialogue

The US and China have outlined targeted tariff relief and agreed to launch an AI dialogue following Xi Jinping’s state visit to Washington, which ended on 25 September, Reuters reported.

The White House said both sides backed recommendations for better tariff treatment covering $30 billion of non-sensitive goods in each direction. That figure is the value of goods covered, not the amount of tax savings.

Potential beneficiaries include US agricultural products, wood and cosmetics, alongside Chinese-made small appliances, toys and decorations. The announcement describes recommendations, not confirmation that new tariff rates are already in force.

On technology, the countries agreed to discuss AI risks and benefits and establish a channel for communicating about AI-related incidents. The White House said the next exchange would take place by November.

The existing trade truce is also being extended by two months beyond its previous 10 November expiry, Reuters reported, citing US Treasury Secretary Scott Bessent.

For businesses, the immediate distinction is between diplomatic progress and implemented policy. The package is targeted; it does not amount to the removal of all US–China trade barriers.

Sources: Reuters, via CNA, 26 September 2026; White House fact sheet, 25 September 2026.

Cover: Donald Trump speaks with Xi Jinping on the White House State Floor during the state arrival ceremony on 24 September 2026. Official White House photo by Daniel Torok / The White House. Public domain. Cropped.