Businesses Say They're "Frozen Out" of Trump's New US-China Tariff Channel

Corporate America had high hopes that President Trump's proposed trade forum with Chinese officials would give businesses a direct channel to influence tariff policy between the world's two largest economies. Months later, many say they're still being left out entirely. Trump and Chinese President Xi Jinping are expected to share limited new details, including potential targets for future tariff reductions, when they meet later this week at the White House. But according to half a dozen industry sources granted anonymity to discuss the matter, the private sector remains largely uninformed about the plans — even with the U.S.-China Board of Trade already launched following the two leaders' last summit. These sources say the administration has only briefed a small number of major China-trading companies on the board's future direction. A Sense of Exclusion Among Industry Groups One senior trade association leader, speaking anonymously to avoid friction with the administration, described the situation as feeling like parts of the industry have been frozen out entirely. The lack of engagement is a setback for companies that had hoped the joint U.S.-China economic board — first proposed last spring — would give them meaningful influence over the roughly $500 billion trading relationship between the two countries, particularly around lobbying for lower tariffs. It also reflects how narrow Trump's current ambitions appear to be for U.S.-China trade talks, which now seem focused mainly on preserving the existing trade truce rather than reshaping it substantially. Origins of the Board of Trade The Board of Trade emerged as one of the most closely watched outcomes of Trump's May summit with Xi in Beijing. U.S. officials, including Trade Representative Jamieson Greer, pitched it as a pathway to reducing tariffs on roughly $30 billion worth of "non-sensitive" goods traded between the two countries — items ranging from soybeans to toy components to low-tech manufacturing parts. Industries reliant on Chinese trade, including tech, retail, and auto manufacturers, hoped the board would create a streamlined process for requesting and securing tariff relief. The U.S. Trade Representative's office solicited public input in June, receiving more than 500 comments from agricultural producers, sporting goods manufacturers, semiconductor suppliers, and others. Since then, however, sources say the administration has offered little public or private guidance on next steps. "It's been zilch for months," the trade association leader said. Officials Say Talks Are Ongoing, but Details Remain Scarce After meeting with Chinese counterparts in New York on Sunday, Greer told reporters that the board has been "operationalized," though negotiations continue as officials work to identify a sufficient volume of goods that could be traded in a balanced way to help stabilize the broader relationship. He suggested agricultural products, energy goods, and medical devices as potential categories for future U.S. tariff cuts, though he did not confirm whether any announcements would come during this week's summit. On the Chinese side, he said consumer goods and low-tech items were the likely focus. A USTR official, also speaking anonymously, defended the administration's outreach efforts, describing the board as a policy process shaped in part by transparent public consultation. The official said tariff reductions ultimately depend on the outcome of ongoing negotiations with Chinese counterparts regarding which goods might be excluded from existing duties. Beijing has similarly offered few specifics, though a Chinese Commerce Ministry spokesperson confirmed last week that negotiators are working toward implementing reciprocal tariff reductions "at an early date." The White House did not respond to a request for comment. Industry Fears a Narrower Outcome The lack of clarity has frustrated both industry representatives and some within the administration who had hoped the board could evolve into a broader economic reset — potentially addressing longstanding disputes, such as China's restrictions on critical mineral exports used in products ranging from fighter jets to electric vehicles. Some lobbyists now worry the administration is settling for a much narrower set of tariff exemptions, similar in scope to those granted during Trump's first-term trade war. Chinese imports currently face some of the highest tariffs among major U.S. trading partners, with effective rates on many products now around 30% or higher. During Trump's first term, companies could formally petition USTR for product-specific tariff exclusions through a structured review process. That system hasn't continued into the current administration, leaving companies to lobby individually for discretionary carveouts instead. Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation, said he hopes serious conversations take place around scaling back tariffs on key goods for both countries, describing the Board of Trade as a genuine opportunity that he hopes both governments choose to use. Talks Continue Ahead of the Summit Chinese negotiators led by Vice Premier He Lifeng were expected to wrap up five days of talks with U.S. counterparts on Wednesday, according to Chinese state media, raising the possibility of last-minute developments ahead of Thursday's Trump-Xi meeting. Additional details on the board's progress could also emerge at future meetings between the two leaders, including a planned APEC summit in Shenzhen in November and a G20 meeting in Miami in December. Sources said the administration has shown some willingness to lower tariffs on Chinese apparel and footwear, along with other products that received exemptions during Trump's first term. One industry representative said the U.S. is pushing for China to include aircraft and heavy machinery on its own list of tariff reductions, though talks remain in early stages and concrete details are unlikely to surface immediately. One source predicted any initial cuts would amount to only a small fraction of what industry groups are seeking. "The companies we represent require much, much, much more broad reassurances than we have secured so far," the source said. Skepticism Over Durability Even if the board announces tariff cuts on select "non-sensitive" categories, trade analysts caution the changes could be reversed quickly if tensions between the two countries resurface. One industry representative based in China said there's no expectation that current arrangements are permanent, nor any clear roadmap for what comes next. The uncertainty has drawn comparisons to earlier U.S.-China economic dialogues under the Bush and Obama administrations, which were often criticized for generating extensive discussion with little concrete outcome. Emily Kilcrease, a former deputy U.S. trade representative under both Trump and Biden, warned that this kind of mechanism risks devolving into prolonged discussion without measurable results. Low Expectations for This Week's Summit China experts and former officials say the administration's limited preparation for this week's summit suggests few substantive outcomes are likely. Evan Medeiros, a former senior Asia director on the National Security Council under Obama, said there's been no serious preparation and that the summit is likely to be more about optics than concrete deliverables. Beijing has also yet to fulfill commitments made during the May summit, including a pledge to purchase 200 Boeing aircraft and a promise to buy $17 billion worth of U.S. agricultural products this year — a commitment China has only recently begun addressing. Beijing has also never confirmed certain details the U.S. previously publicized, including Trump's claim that China's Boeing order could eventually reach 750 planes. Chad Bown, a former chief economist at the State Department under the Biden administration, warned that continued disagreement could spill into more sensitive trade areas, potentially prompting China to again restrict exports of rare earths and permanent magnets — materials he said are critical enough that disruption could significantly damage large portions of the American economy.