U.S. and China Agree to Cut Tariffs

2026-05-16

China's Ministry of Commerce said on the 16th that it had reached a general agreement with the United States to lower the tariffs they impose on each other. It will set up a "Trade Committee" to discuss trade expansion for products of mutual interest and work out specific measures.

Following summit and ministerial talks

The announcement follows the U.S.-China leaders' summit held in Beijing on the 14th and 15th, and ministerial talks between the two countries held in South Korea on the 13th. The ministry said both sides agreed to reduce tariffs on products of a similar scale, but did not specify the items. The scope and scale of the cuts will be discussed at future Trade Committee meetings. A "Investment Committee" will also be established to discuss mutual investment.

Coordination on aircraft and farm goods

The ministry also said it had agreed to purchase U.S. aircraft. However, it did not say how many. The two sides also decided that the U.S. would smoothly supply aircraft engines and related parts to China. After the summit, U.S. President Donald Trump said China had promised to buy more than 200 Boeing aircraft from the U.S., with up to 750 possible.

For agricultural products, the goal is to remove non-tariff barriers. The U.S. is moving to ease import restrictions on Chinese dairy products and seafood, while China is working on registering meat facilities required to import U.S. beef and resolving issues related to importing U.S. chicken. However, the ministry said details are still under discussion and did not mention quantities or purchase timing.

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