China says preliminary tariff cuts agreed

China’s commerce ministry said on May 17 that Beijing and Washington had reached a preliminary agreement to lower some tariffs and expand two-way trade after President Donald Trump’s visit to Beijing. The statement added that the two sides agreed to set up a trade council and an investment council, and to make progress on non-tariff barriers and market-access issues in agriculture. The White House, in a separate account, highlighted soybeans, rare earths and aircraft-related commitments. The differing readouts left the scope, timing and legal mechanics of any tariff changes still unclear. ### What did China say was agreed? China’s Ministry of Commerce said on Saturday that the two sides had agreed “in principle” to lower tariffs on products of respective concern on an equivalent scale, according to the ministry statement reported by Politico and Reuters. The ministry said the trade council would discuss tariff reductions on specific products and broader cuts on unspecified goods, including agricultural products. Beijing also said the two countries agreed to promote two-way trade through mutual tariff reductions on a range of products and to resolve, or make substantive progress toward resolving, non-tariff barriers and market-access issues involving some agricultural goods. The ministry described the arrangements as preliminary and said they would be finalized “as soon as possible.” (politico.eu) ### Why did the U.S. and Chinese accounts not match? President Donald Trump said on May 15 that tariffs were not discussed in his meetings with Xi Jinping, according to Politico’s account of the trip. China’s commerce ministry then said the next day that tariff reductions were part of the preliminary understanding, creating a gap between the leaders’ public comments and Beijing’s formal statement. (politico.eu) The White House fact sheet published after the summit emphasized a different set of deliverables. It said China would buy at least $17 billion of U.S. agricultural products annually through 2028, address U.S. concerns over shortages of rare earths and other critical minerals, and participate in government-to-government boards on trade and investment. China’s statement did not confirm the $17 billion figure and did not mention rare earths. (politico.eu) ### Which sectors were named by each side? The White House said China would increase purchases of U.S. farm goods, including commitments tied to soybeans, and would again allow sales of U.S. beef and poultry. CNBC reported that the U.S. readout also cited Chinese steps on rare earth supplies, naming yttrium, scandium, neodymium and indium. China’s commerce ministry named agriculture and aviation. (cnbc.com) The ministry said the two sides had reached arrangements concerning China’s purchase of U.S. aircraft and U.S. guarantees for the supply of aircraft engines and related parts to China. Politico reported that Trump had earlier said China agreed to buy 200 Boeing aircraft as well as General Electric engines. Reuters reported that China’s farm imports from the United States still face an additional 10% levy after last year’s tariff rounds, and that U.S. agricultural exports to China fell 65.7% year on year to $8.4 billion in 2025, citing U.S. Department of Agriculture data. Reuters also reported that Beijing granted five-year registration extensions to 425 U.S. beef plants and approved new five-year registrations for 77 additional U.S. facilities. (politico.eu) ### Do we know which tariffs will actually change? Neither side has published a product-by-product tariff schedule or an implementation calendar as of May 18. China’s ministry said only that the sides agreed in principle to reciprocal reductions on products of concern, while the White House framed the outcome around purchases and supply-chain access rather than listing tariff lines. (usnews.com) Johnny Xiang, founder of Beijing-based AgRadar Consulting, told Reuters that tariff reductions on agricultural products would allow commercial Chinese buyers to re-enter the market. That assessment was tied to soybeans, where Reuters said market watchers expected a 10% cut, but neither government had published that number in an official readout. (politico.eu) ### What happens next? The White House and China’s commerce ministry both said the two governments would use new trade and investment bodies to continue discussions. CNBC reported that both sides acknowledged the creation of those forums even as they stressed different summit outcomes. September is the next named milestone. Politico reported that Xi is expected to make a state visit to the White House that month, and CNBC said Trump and Xi had agreed to meet in the United States in September. (usnews.com) Until then, the clearest next step is technical work through the new councils on tariff lists, market-access issues and implementation details. (politico.eu) (cnbc.com)