US, China discuss tariff cuts on energy, farm goods ahead of summit - report

The United States and China are negotiating to reduce tariffs on specific goods, such as American energy and agricultural products, in preparation for an anticipated extension of their trade truce, according to Bloomberg News. These upcoming meetings are also anticipated to result in an agreement to cut duties on Chinese inputs for manufacturers, based on information provided by unidentified sources.

It is reported that these actions would be implemented under a previously outlined plan for reciprocal tariff reductions on approximately $30 billion in trade, as stated by the individuals familiar with the matter. Most-favored-nation rates would be applied to certain items from China, the report added. U.S. Treasury Secretary Scott Bessent has indicated that he plans to meet with Chinese Vice Premier He Lifeng this weekend, preceding a summit between President Donald Trump and Chinese President Xi Jinping scheduled for September 24 in Washington.

However, the specific date and location of this meeting have not been disclosed. The Financial Times has reported that the two officials will meet in New York on Sunday. It has been suggested that Trump has stated Xi will visit the White House on September 24, an event that would also include a state dinner. According to the report, Washington is only providing a six-month extension to the trade truce, partly because it believes Beijing has not fully honored commitments on rare earths made during Xi's meeting with Trump in Busan, South Korea, in October.

An extension of the truce would alleviate a potential obstacle for a global economy facing challenges such as conflicts in Iran and Ukraine, rising oil prices, and rekindled inflation concerns leading to increased borrowing costs worldwide. Despite these expectations, the summit's prospects remain uncertain due to China's connections to Iran and Russia, as well as competition over advanced technologies like artificial intelligence.

Bessent expressed his anticipation of discussing sanctions related to the war in Iran with He, as Washington intensifies economic pressure on Tehran. Representatives from state-owned food trader Cofco may accompany Xi during his U.S. visit, as reported by Bloomberg, citing two individuals familiar with the matter. Additionally, over a dozen companies are being considered for a CEO delegation, although no final decision has been made.