U.S., China Reach New Trade Agreement Covering $30 Billion in Goods Each Way After Xi Visit

WASHINGTON - The United States and China have reached a new economic agreement following Chinese President Xi Jinping's state visit to Washington, including more favorable tariff treatment for $30 billion of non-sensitive goods in each direction.

The White House disclosed the agreement following three days of meetings between Xi and President Donald Trump, while China's government separately announced what it described as an eight-point consensus reached during the visit.

The agreement represents one of the most concrete economic outcomes of the summit after the two governments spent months negotiating tariffs, agricultural trade, market access and other commercial disputes.

The arrangement does not eliminate the broader trade tensions between the world's two largest economies.

Both governments continue to negotiate over rare earth supplies, technology restrictions and other unresolved economic issues.

$30 billion in goods each direction

The White House said the two countries reached consensus on recommendations for more favorable tariff treatment covering $30 billion of non-sensitive goods exported in each direction.

That means the agreement covers separate groups of U.S. exports to China and Chinese exports to the United States rather than representing a $30 billion cash payment or a $30 billion reduction in government revenue.

China described the arrangement as a reciprocal tariff-reduction agreement worth $30 billion on each side.

For American exporters, the White House said products covered include agricultural goods, fish and seafood, logs and wood products, cosmetics and medical devices.

For imports from China, covered products include consumer goods such as small appliances, toys, holiday decorations and children's car seats.

Additional implementation details, including specific tariff rates and product classifications, are expected to determine the practical impact of the agreement.

New Board of Trade

The agreement also puts into operation a U.S.-China Board of Trade first established during the countries' May summit in Beijing.

The board is intended to provide a formal mechanism for addressing trade disputes and identifying products that could receive more favorable tariff treatment.

A new working group under the Board of Trade will focus specifically on agricultural market-access barriers.

Agricultural trade has remained an important issue between the two governments as Washington presses Beijing to fulfill commitments to purchase American farm products.

China had previously committed to purchasing large quantities of U.S. soybeans and other agricultural products.

Coal purchases included

The White House also announced that China will import at least 10 million metric tons of U.S. coal in 2027 and another 10 million metric tons in 2028.

The agreement provides a defined future market for a portion of U.S. coal production.

The administration presented the coal commitment as part of its broader effort to increase American energy exports.

The specific commercial contracts and companies involved were not detailed in the White House announcement.

Board of Investment established

Washington and Beijing also established a U.S.-China Board of Investment.

According to the White House, the board will discuss potential investment opportunities, regulatory obstacles and other commercially significant investment issues between the two countries.

The mechanism had been planned during the May summit but had not yet been fully established.

Investment remains a sensitive area because both governments maintain national-security restrictions affecting certain industries and technologies.

Trade truce extended

The agreement follows a separate decision this week to extend the existing U.S.-China trade truce by two months.

Treasury Secretary Scott Bessent said the arrangement, which had been scheduled to expire Nov. 10, will now continue until Jan. 10.

The extension prevents the immediate return of the much higher reciprocal tariffs imposed during the earlier trade confrontation while negotiators continue working on unresolved issues.

At the height of the tariff dispute, duties imposed by the two countries had exceeded 100% on some trade.

The current truce has reduced those rates while preserving a framework for continued negotiations.

Rare earth dispute remains unresolved

The White House said the United States and China are still working to address American concerns involving rare earth elements and other critical minerals.

China dominates several stages of the global supply chain for rare earth materials used in automobiles, electronics, defense systems and advanced technology.

U.S. officials have previously said Chinese deliveries were falling short of expectations.

Friday's agreement did not announce a final resolution of that dispute.

That leaves critical minerals as one of the major economic issues still separating Washington and Beijing.

AI dialogue also established

The summit produced a separate agreement involving artificial intelligence.

The two governments agreed to establish a bilateral dialogue addressing the risks and benefits of advanced AI technology.

The White House said the next exchange is expected by November.

The countries also agreed to establish a direct communication channel for AI-related incidents.

China's Foreign Ministry separately confirmed the AI dialogue and incident-communication mechanism.

The two governments remain major competitors in advanced computing and artificial intelligence despite agreeing to discuss shared risks.

Xi visit concludes

Xi's visit to Washington ended Friday after meetings at the White House, a state dinner and a visit with Trump to the National Archives.

Trump said after the meetings that American farmers would benefit from the discussions but initially released few specific details.

Xi said the two governments had secured mutually beneficial economic and trade outcomes during the visit.

The Chinese government announced additional details Saturday, including the tariff arrangement and AI dialogue.

The White House's own fact sheet confirms the tariff treatment covering $30 billion of goods in each direction as well as the coal purchases and new trade and investment mechanisms.

Broader tensions remain

Despite the new economic agreements, major disagreements between the United States and China remain.

The two countries continue to differ over Taiwan, technology controls, rare earth exports and China's relationship with Iran.

The summit also did not produce a comprehensive settlement of the broader trade relationship.

Instead, the latest agreement expands areas in which the two governments have agreed to manage specific portions of their economic relationship while negotiations continue.

What happens next

The immediate focus will shift to implementing the new tariff treatment and determining how quickly businesses can take advantage of the changes.

The Board of Trade and Board of Investment will also begin operating as formal channels for future disputes and commercial negotiations.

The existing tariff truce is scheduled to remain in effect through Jan. 10.

Trump and Xi are also expected to meet again later this year, including at the Asia-Pacific Economic Cooperation gathering in China and the Group of 20 summit in Miami.

The new agreement marks measurable progress in U.S.-China economic relations, but both governments acknowledge that significant trade and strategic disputes remain unresolved.