Washington/Beijing: The United States and China have announced new measures aimed at reducing trade tensions following talks between US President Donald Trump and Chinese President Xi Jinping, while major disagreements between the two countries remain unresolved.

The latest developments include plans for reciprocal tariff reductions covering approximately $30 billion of goods from each side. The two governments have also agreed to continue structured economic discussions and establish additional channels for dialogue on emerging issues.

Tariff Reductions Cover Non-Sensitive Goods

The proposed tariff changes focus primarily on products considered non-sensitive by the two governments.

The US list contains more than 1,600 categories of Chinese goods, while China’s list covers a smaller group of US products. Items include consumer products, agricultural goods, personal-care products, medical equipment and other merchandise.

Around 90 percent of the products covered by the arrangement are expected to move toward standard most-favoured-nation tariff rates once the required domestic procedures are completed. Strategic sectors such as semiconductors, electric vehicles and batteries are not included in the current arrangement.

New Trade Mechanisms Planned

Washington and Beijing have also agreed to strengthen their institutional channels for economic discussions.

China’s Commerce Ministry said the two sides agreed to establish a Board of Trade to facilitate continued discussions on bilateral trade issues. A separate Board of Investment is also intended to provide a platform for discussing investment opportunities and barriers.

These mechanisms are intended to keep negotiations active even when disagreements emerge over individual trade and investment issues.

AI Dialogue Added to Bilateral Agenda

Artificial intelligence has also become part of the diplomatic agenda.

The two countries agreed to establish a bilateral AI dialogue covering issues related to the opportunities and risks associated with the technology. A communication channel for AI-related incidents is also planned, with another round of discussions expected in November.

The development reflects the growing importance of AI to national security, technology competition and the global economy.

Broader Disagreements Remain

Despite the latest trade measures, Washington and Beijing continue to differ over several major issues, including technology, Taiwan, market access and strategic competition.

The latest tariff arrangement therefore represents a limited area of cooperation rather than a comprehensive resolution of the broader US-China relationship. Analysts cited in recent reporting have described the summit’s results as modest compared with the scale of the outstanding disputes.

More High-Level Meetings Expected

Trump and Xi are expected to meet again at major international gatherings later this year, including the APEC Economic Leaders’ Meeting in Shenzhen and the G20 summit in Miami, according to the agreements announced after their latest meeting.

The continuation of high-level dialogue gives both governments opportunities to address unresolved economic and diplomatic issues while maintaining communication during periods of disagreement.

What Comes Next

The immediate focus will be on implementing the agreed tariff arrangements and completing domestic legal procedures.

Businesses on both sides are also watching whether the latest measures lead to broader improvements in market access and trade conditions. At the same time, strategic disputes that fall outside the current tariff package are likely to remain part of the wider US-China relationship.

For now, Washington and Beijing have created additional channels for economic and technological dialogue while taking limited steps toward reducing tariffs on selected goods.