U.S. and China Weigh $30 Billion Tariff Cuts Ahead of Beijing Summit

The United States and China are considering reciprocal tariff reductions on about $30 billion of “non-sensitive” goods, as the two sides explore a managed-trade mechanism ahead of a summit between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing on May 13, 2026. The discussions point to a framework focused on numerical trade targets in non-strategic sectors, rather than U.S. demands that China overhaul its broader economic model.

The concept has been framed as a “Board of Trade” mechanism that would identify categories of goods for lowered trade barriers while keeping national security-sensitive technologies outside the scope. Officials have described the approach as a way to “optimize” bilateral trade without crossing security red lines.

U.S. Trade Representative Jamieson Greer introduced the “Board of Trade” idea in March as a potential deliverable for the Trump-Xi meeting. The approach would aim to narrow the focus to areas where both governments believe trade can expand without undermining existing safeguards.

Talks in South Korea set groundwork

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met in Incheon, South Korea, on May 13, 2026, in talks that helped lay preliminary groundwork for economic proposals expected to be discussed in Beijing. No statements were issued about that meeting in the material provided.

The initiative, as outlined in the article, would concentrate on a defined set of products considered non-sensitive by both sides. It would sit alongside broader tariffs and controls that remain tied to national security concerns.

Possible targets include energy and farm goods

The potential tariff reductions could include U.S. energy and agricultural exports to China that currently face retaliatory duties. China maintains a general extra 10% tariff on all U.S. imports, mirroring a U.S. temporary 10% tariff on Chinese goods, according to the article.

Specific Chinese duties cited include 10% on crude oil, 15% on liquefied natural gas, 15% on coal, and up to 55% on beef. On the U.S. side, tariffs of 7.5% remain on a range of Chinese consumer products, including flat-panel televisions and flash memory devices, dating to the 2019 trade war.

Trade data in the article show the scale of the relationship has contracted in recent years. Two-way U.S.-China goods trade fell 29% to $415 billion in 2024 from $582 billion, while the U.S. trade deficit declined by nearly 32% to $202 billion in 2025, described as its lowest level in two decades.

Any details on which goods would qualify, and whether the leaders would finalize a list during the Beijing meeting or leave it to follow-on talks, remain to be clarified.