The United States and China are expected to move toward a limited trade framework this week that could see both sides reduce tariffs on roughly $30 billion worth of non-sensitive goods, according to officials and people familiar with the discussions.
The proposed approach, informally described by some officials as a “Board of Trade” mechanism, was first raised by US Trade Representative Jamieson Greer in March. It is being positioned as a potential deliverable for an upcoming high-level meeting between US President Donald Trump and Chinese President Xi Jinping.
Under the emerging plan, both countries would identify categories of goods considered non-strategic and potentially ease tariff and trade barriers on them, while maintaining restrictions on sectors tied to national security. The focus marks a shift away from broader efforts to reshape each country’s economic model and instead centers on more targeted trade adjustments.
Greer has described the approach as a practical framework aimed at identifying areas where trade can be “optimized” without requiring structural changes to either economy. He compared the concept to an “adapter” designed to connect two different economic systems and improve compatibility in selected areas.
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng recently met in Incheon, South Korea, for several hours of discussions to prepare economic proposals for leaders to review. However, no official statement was released following the meeting.
According to individuals familiar with US objectives, the framework under consideration could involve around $30 billion in reciprocal tariff reductions. Some estimates suggest the range of affected goods could eventually expand to between $30 billion and $50 billion, though no final list has been confirmed.
Trade analysts note that the initiative would initially cover only a small portion of overall bilateral trade. Wendy Cutler, a former US trade negotiator, said the concept could begin with a limited basket of non-sensitive goods and potentially expand over time depending on progress.
Recent data shows US-China goods trade has declined significantly, falling 29 percent to $415 billion from $582 billion in 2024. During the same period, the US trade deficit with China dropped by nearly 32 percent to $202 billion in 2025, its lowest level in two decades, according to official data.
Both governments have not publicly confirmed details of the proposed mechanism. The US Trade Representative’s office and the Treasury Department declined to comment ahead of the upcoming summit, while Chinese officials have described ongoing discussions as efforts to explore new cooperation frameworks without providing specifics.
Key sectors expected to be discussed include energy and agriculture. The US has been seeking to expand exports of these products, while China currently applies additional tariffs on several US imports, including crude oil, liquefied natural gas, coal, and beef. At the same time, the US maintains duties on a range of Chinese consumer goods first introduced in previous trade measures, some of which remain in effect alongside temporary tariffs set to expire later this year.
US officials have also considered reviving or extending certain tariff exclusions granted during earlier trade negotiations, particularly for industrial and medical products. Some of these exemptions have already been renewed temporarily, while others are under review for possible longer-term application.
The outcome of the discussions is expected to shape the next phase of trade relations between the two economies, particularly in determining whether the limited tariff reductions can evolve into a broader framework in the future.
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