China and the United States are seeking to finalize an agreement on reciprocal tariff reductions covering $30 billion worth of goods from each country, raising expectations that the two sides could announce a deal when Presidents Donald Trump and Xi Jinping meet in Washington later this month.

Chinese Commerce Ministry spokesperson Huang Ling said Thursday that economic and trade negotiators from both countries were working to implement the tariff reductions “at an early date.” She did not provide details on the products involved or the size of the proposed cuts.

The planned reductions stem from an agreement reached during Trump and Xi’s May meeting in Beijing, when the two governments agreed to establish a U.S.-China Board of Trade and a parallel Board of Investment as part of efforts to stabilize their economic relationship.

Under the framework, the countries are discussing reductions on roughly $30 billion of goods on each side, with the focus expected to be on non-sensitive products. Beijing previously sought views from Chinese companies, business groups and local governments on which goods could be included, while Washington has also been gathering input.

Tariffs at center of Trump-Xi summit

The latest development comes ahead of an expected September 24 meeting in Washington between Trump and Xi. Trump said last week that Xi would visit Washington on that date, describing their relationship as positive while acknowledging the two countries remain competitors.

Trade is expected to be one of the central issues at the summit, alongside technology, investment and other areas of strategic competition. The two governments are also preparing bilateral discussions on artificial-intelligence safety ahead of the leaders' meeting.

The prospect of tariff reductions has been reinforced by signs of increased commercial engagement. China has purchased roughly 1 million metric tons of U.S. soybeans this week, according to traders cited by Reuters, bringing its purchases close to half of a commitment to buy 25 million tons annually through 2028.

Broader trade deal remains difficult

Despite the renewed negotiations, expectations for a comprehensive U.S.-China trade agreement remain limited.

The current tariff truce is due to expire on November 10, increasing pressure on both sides to secure at least a partial agreement before the deadline. Analysts have suggested that narrowly targeted tariff reductions are more realistic than a sweeping deal covering the broader range of disputes between Washington and Beijing.

U.S. Treasury Secretary Scott Bessent has meanwhile continued to press China to address what Washington considers persistent trade imbalances. He said recently that China's roughly $1.2 trillion trade surplus was unsustainable and argued that Beijing should do more to strengthen domestic demand and reduce its reliance on exports.

At the same time, significant disagreements remain over technology controls, Chinese industrial capacity, rare-earth exports and U.S. restrictions on Chinese companies. These issues could complicate efforts to turn the planned tariff reductions into a broader and more durable trade settlement.

For now, both governments appear focused on preserving the fragile trade truce and producing concrete economic results before or during the Trump-Xi summit. An agreement covering $30 billion in goods on each side would represent a relatively limited step, but could provide a basis for further negotiations between the world's two largest economies. (ILKHA)