Trump and Xi Discuss $30 Billion Tariff Cuts in New Managed Trade Plan

The United States and China are moving toward a limited “managed trade” arrangement that could reduce tariffs on about $30 billion worth of goods, focusing on non-sensitive sectors while avoiding national security issues.

The proposal is expected to be discussed during upcoming talks between U.S. President Donald Trump and Chinese President Xi Jinping.

Limited “Managed Trade” Plan

The plan, referred to as a possible “Board of Trade,” was first proposed by U.S. Trade Representative Jamieson Greer.

Instead of pushing structural economic reforms in China, the framework focuses on targeted tariff reductions in selected sectors while keeping broader trade restrictions in place.

$30 Billion Trade Basket Under Consideration

Both sides are considering identifying roughly $30 billion worth of goods each for tariff relief, with estimates suggesting the total could reach up to $50 billion.

Key areas include U.S. energy and agricultural exports, while China may gain improved access to selected goods in return.

Existing tariffs remain largely unchanged, including Chinese duties on U.S. energy and agricultural products and U.S. tariffs on a wide range of Chinese imports introduced in earlier trade disputes.

Background Talks

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng recently held preparatory talks ahead of the leaders’ meeting.

Trump Arrives in China for High-Stakes Xi Summit

Investment Discussions

A separate proposal for a “Board of Investment” is also under review, but U.S. officials have expressed caution over expanding investment ties, particularly in sensitive industries.

Outlook

The initiative signals a shift toward limited, sector-based cooperation aimed at easing select trade tensions without resolving broader structural disputes.

https://www.bbc.com/news