Scott Bessent discusses trade and AI ahead of Trump-Xi summit
High-stakes discussions regarding trade and artificial intelligence are taking place in New York City, where Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are meeting with Chinese officials. Fox News contributor Dan Hoffman offers insights on this strategic interplay between the United States and China as they approach the upcoming summit with President Donald Trump and Xi Jinping.
The U.S. and China have come to an agreement to lower tariffs on $30 billion worth of goods traded bilaterally, following a three-day summit in Washington, D.C. between Trump and Xi. The White House indicates that these reductions will focus on “non-sensitive goods.”
Products exported from the U.S.—like agricultural items, seafood, timber, cosmetics, and medical devices—will benefit from lowered tariffs in China. In contrast, imports from China, such as small appliances, toys, holiday decorations, and car seats for children, will also enjoy favorable treatment in the U.S.
This arrangement was established through the U.S.-China Board of Trade, which was proposed during Trump’s visit to China in May and officially set up during Xi’s visit to Washington this week.
U.S. Trade Representative Greer mentioned on CNBC that details about the new trade agreement would be unveiled on Monday. He noted that the tariff terms were finalized after several weeks of negotiations, though neither nation has disclosed the specific tariff rates or the entire list of products that will have favorable status moving forward.
This development marks a significant easing of the trade tensions that began when Trump imposed a 10% tariff on all Chinese imports in February 2025, citing concerns over China’s role in the fentanyl crisis and illegal immigration. In retaliation, China had implemented levies on U.S. coal, liquefied natural gas, and automobiles.
At one point, U.S. tariffs on Chinese products had skyrocketed to 145% in April 2025, shortly after Trump’s “Liberation Day” announcement regarding reciprocal tariffs. In response, China had instituted tariffs as high as 125% on U.S. imports.
In May 2025, U.S. and Chinese negotiators met in Geneva and agreed to a 90-day truce that eased U.S. tariffs to 30% and China’s to 10%. This agreement was extended for an additional 90 days in August.
Subsequently, during talks in South Korea in October 2025, Trump and Xi reached another tentative agreement. China pledged to restrict the production of fentanyl precursors, continue purchasing U.S. soybeans, and relax rules on rare-earth exports, while the U.S. agreed to make further concessions on tariffs.
The two nations will continue to utilize the Board of Trade for negotiating additional tariff reductions and addressing trade disputes, hinting at the potential for broader agreements in the future.
