U.S. and China agree to slash tariffs on $30 billion of each other’s goods after Trump-Xi summit

The United States and China agreed to cut tariffs on $30 billion worth of each other’s goods after Xi Jinping’s three-day visit to Washington. China’s Foreign Ministry announced the reciprocal deal Saturday.

It is one of eight provisions in an accord that was reached between Jinping and President Donald Trump. The other provisions include issues related to artificial intelligence, trade coordination, international summits, Iran, and international shipping rules.

Both governments will establish a trade council and implement the commitments made during prior negotiations held in Kuala Lumpur. According to Scott Bessent, the United States’ treasury secretary, the U.S. and China have already prolonged their trade truce by two months. Originally, this truce was set to end on November 10.

The summit ended Friday without a major public breakthrough, with the meetings centered more on direct diplomacy. Jinping later returned to Beijing, according to the Chinese state news agency Xinhua.

China and the U.S. launch AI talks as Chinese model usage jumps worldwide

AI became one of the clearest new areas of structured talks. China said both sides will discuss the risks and benefits of the technology, with the next round planned for November. They will also create a direct communication channel for AI-related incidents.

That comes as Chinese AI models gain more usage among companies around the world in 2026. Data shared with CNBC showed Chinese systems moving from a small slice of activity to a majority on two major developer platforms that connect businesses with models from multiple providers.

On OpenRouter, Chinese models made up 57% to 67% of tokens used during the week of September 14. In February, the range was only 6% to 13%. On Vercel, their share reached 55% in August, up from 11% in January.

OpenRouter’s figures covered companies in the U.S., Europe, and a group it calls the Global South. That category includes 82 countries across Central America, South America, Africa, and Asia. Vercel did not give a geographic breakdown for its figures.

Businesses in OpenRouter’s Global South group have recently used Chinese models more than any other regional group on the platform. About 67% of their tokens went to Chinese systems. Companies in the U.S. account for roughly half of all tokens used on OpenRouter.

Washington keeps chip limits while Trump and Xi add global commitments

The rise in Chinese model use has drawn scrutiny in Washington. Two U.S. House committees are investigating the impact of that growth. The U.S. has also tried to protect its lead in AI by blocking Chinese companies from buying the most advanced chips through export controls.

Chinese companies will be monitored to see whether they are able to access restricted Nvidia (NASDAQ: NVDA) chips via overseas servers. The US is equally concerned about distillation, a process that makes it possible for new models to mimic the patterns and outputs of old models.

Jinping addressed those tensions during his talks with Trump. He said the better approach is to “draw on each other’s strengths, not guard against each other,” referring to Beijing’s objections to U.S. technology restrictions and possible future limits on AI.

“The two sides can continue their dialogue on AI, exchange views on its risks and benefits, and jointly prevent the misuse and abuse of AI,” Jinping added.

The agreement also goes beyond tariffs and technology. China said both governments will support each other as hosts of major international meetings. That includes the Asia-Pacific Economic Cooperation leaders’ meeting and the Group of 20 summit. Trump had earlier said on social media that each leader planned to attend the gathering hosted by the other.

Foreign policy also made the eight-point list. China’s Foreign Ministry said Trump and Jinping agreed that Iran should honor its commitment not to develop nuclear weapons. They also agreed that no country or organization should charge transit tolls on international waterways.

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