US, China weigh $30B tariff cuts

U.S. and Chinese officials moved this week toward another limited easing of trade tensions, with both sides discussing matching tariff cuts on at least $30 billion of goods each and Beijing signaling it could accept some increase in U.S. duties to keep a broader truce in place. Chinese state-linked and international media reports said the talks also covered rare earths, beef trade and a Boeing order that China has now confirmed. The discussions followed President Donald Trump’s trip to Beijing and meetings with Chinese President Xi Jinping. The emerging package points to narrower commercial deals rather than a settlement of the wider disputes that have driven the two countries’ tariff fight. ### How much tariff relief is actually on the table? China’s commerce authorities said they were working with Washington on reducing tariffs affecting tens of billions of dollars in traded goods, and Channel NewsAsia reported the target under discussion was at least $30 billion on each side. Euronews reported that officials were prepared to reduce tariffs on “tens of billions” of dollars of goods, describing the move as the latest step after more than a year of tit-for-tat escalation. (channelnewsasia.com) The broader backdrop remains a truce reached earlier in the trade conflict. CNBC reported previously that the United States agreed in May 2025 to lower tariffs on Chinese goods to 30%, while China reduced its own tariffs on U.S. goods to 10% for a 90-day period. Bloomberg reported on May 20, 2026, that Beijing had signaled it would tolerate some increase in U.S. tariffs up to levels discussed last year if that helped preserve and extend the current truce. (channelnewsasia.com) ### Why would Beijing accept higher U.S. tariffs at all? Bloomberg reported that China’s position was tied to extending the trade truce rather than reopening a full tariff confrontation. That framing suggests Beijing is trying to cap the damage from U.S. duties while keeping negotiations alive, according to the report. (cnbc.com) Reuters, in a May 19 report surfaced through Yahoo Finance, said Treasury Secretary Scott Bessent told reporters the Trump administration was “not in a rush” to extend the China trade truce, which is due to end in November. That timetable helps explain why both sides are now discussing interim measures instead of a comprehensive agreement. (bloomberg.com) ### What else is being traded besides tariff cuts? China confirmed it will buy 200 aircraft from Boeing, Channel NewsAsia reported on May 21, saying the agreement was reached after Trump met Xi in Beijing last week. The same report said the two sides were also seeking matching tariff cuts and linked the aircraft order to the recent summit diplomacy. (ca.finance.yahoo.com) Other items have also appeared on the agenda. The briefing cited a report saying rare earths, a Boeing order and the reopening of beef trade were under discussion in the Beijing talks. Those issues fit a pattern seen in earlier U.S.-China negotiations, where tariff relief is paired with specific purchases or sector access rather than broad structural changes. The last point is an inference from the mix of items reported, not a formal statement by either government. (channelnewsasia.com) ### Does this change the bigger U.S.-China relationship? The Beijing talks have unfolded alongside continued disputes over Taiwan and security policy. Reporting referenced in the source briefings said the Trump-Xi summit showed economic engagement continuing even as deeper strategic divisions remained unresolved. Separate coverage from AP and NBC said Taiwan featured prominently around the summit and remained a live point of friction. (channelnewsasia.com) Michael Froman, president of the Council on Foreign Relations, wrote after the summit that the two sides had reached what he called a “decent peace,” while leaving the harder security questions untouched. His assessment, and other outside commentary, points to a narrower stabilization effort rather than a broad reset in ties. ### What should readers watch next? (apnews.com) November is the clearest deadline in the current process because that is when the existing U.S.-China trade truce is due to expire, according to Reuters’ May 19 report. Before then, negotiators are expected to keep working through tariff lines, commercial purchases and sector-specific access issues including rare earths and agriculture. (cfr.org) Any formal next step is likely to come from statements by the U.S. administration, China’s commerce ministry or follow-up reporting tied to the Trump-Xi understandings reached in Beijing last week. For now, the concrete pieces on the table are the proposed $30 billion tariff cuts on each side and the 200-plane Boeing order China has already confirmed. (channelnewsasia.com) (ca.finance.yahoo.com)