Trump and Xi Meet in Washington to Extend Trade Truce
Leaders of the US and China begin two days of talks aimed at reducing tariffs and extending their current trade agreement.
Key points
- US and China leaders meet in Washington to extend their trade truce by six months.
- Both sides are expected to reduce tariffs on thirty billion dollars of goods each.
- Experts anticipate no major breakthroughs on sensitive political issues like Taiwan.
President Donald Trump and Chinese leader Xi Jinping began two days of trade talks in Washington on Thursday. According to AOL.com, the summit focuses on reducing tariffs and extending a truce that has calmed global markets since 2025.
The meeting follows a previous summit in Beijing last May. Both sides seek to stabilize a relationship that has caused uncertainty for businesses. Experts anticipate some agreements but expect the outcome to be modest rather than transformative.
Trade Truce Extension Expected
Analysts predict the current trade pause will be extended by six months. This extension would allow for further negotiations later this year. Melanie Hart of the Atlantic Council noted that both sides have strong incentives to maintain this stability.
The original truce prevents further retaliatory measures until November. Extending it avoids a return to tit-for-tat economic sanctions. This move is seen as a logical step to keep the dialogue open.
Tariff Reductions Are Likely
Both nations plan to cut import taxes on specific goods. Currently, the US charges a 36.5% tariff on Chinese products. China imposes a 31% tariff on American imports, according to the Congressional Research Service.
Negotiators refer to this as the “30 by 30” deal. Each side will remove tariffs on thirty billion dollars of goods. Experts believe this reduction is almost certain to be announced during the summit.
Major Conflicts Remain Unresolved
Significant disagreements on Taiwan, AI, and Iran are unlikely to be resolved. Louise Loo of Oxford Economics expects the talks to focus on stable, predictable areas. Minor deals for soybeans and airplanes may also be signed.
Scott Kennedy of the Center for International and Strategic Studies described the event as largely ceremonial. He expects little substantive change beyond the basic extension of the truce. The primary goal is to keep the relationship from deteriorating further.
