China signals acceptance of tariffs

China signaled this week that it is prepared to live with some U.S. tariffs rather than let trade talks break down. Beijing’s position, reported by Bloomberg on May 20 and echoed by China’s commerce ministry the same day, ties acceptance of a limited tariff level to extending the current truce and keeping negotiations moving. The talks also produced discussion of matching tariff cuts on at least $30 billion of goods on each side, according to Chinese state media and Channel News Asia. China separately confirmed it will buy 200 Boeing aircraft, giving both governments a concrete commercial deliverable to point to. ### Why would Beijing accept tariffs instead of demanding they all go? Bloomberg reported that China told U.S. negotiators it could accept an American tariff level broadly in line with one agreed last year, so long as the truce is prolonged. That is a narrower objective than a full rollback, but it suggests Beijing is prioritizing continuity in negotiations over a public fight about eliminating every duty immediately. (bloomberg.com) The commerce ministry in Beijing said on May 20 that recent consultations produced “preliminary outcomes” on tariffs, agricultural trade, rare-earth export controls and aircraft trade. Xinhua and CGTN, both citing the ministry, said the two sides agreed in principle to discuss a reciprocal tariff-reduction framework covering products of equivalent scale worth $30 billion or more. (bloomberg.com) ### What exactly is on the table in the tariff talks? Channel News Asia reported that Washington and Beijing are seeking reciprocal tariff cuts covering at least $30 billion of each other’s goods. Euronews separately reported that the two governments were preparing to reduce tariffs affecting tens of billions of dollars in trade after more than a year of tit-for-tat escalation. (news.cgtn.com) The current framework appears to build on the earlier truce reached in 2025. CNBC reported at the time that the United States and China agreed to suspend most tariffs for 90 days, cutting reciprocal tariffs from 125% to 10% while leaving a separate 20% U.S. duty tied to fentanyl in place, for a total U.S. tariff level of 30% on China. Bloomberg’s May 20 report said Beijing is now willing to tolerate some increase up to a level agreed last year, linking the current talks to that earlier baseline. (channelnewsasia.com) ### Why does the Boeing order matter so much? China confirmed a purchase of 200 Boeing commercial aircraft following the latest round of talks. CNBC reported the order on May 20, and China’s commerce ministry listed aircraft trade among the areas covered in the consultations. The Boeing commitment gives negotiators a visible result outside tariff schedules. (cnbc.com) It also revives a politically sensitive export category for the United States, where large aircraft orders are easy for both governments to present as evidence of progress. Aerotime described it as China’s confirmation of a 200-aircraft order following the Trump-Xi talks. (cnbc.com) ### Does this mean the trade war is ending? Euronews reported that analysts expect only a limited growth effect even if tariffs on tens of billions of dollars of goods are reduced. The article said the proposed cuts would lower trade barriers, but warned they would not erase the broader economic damage from the earlier escalation. (aerotime.aero) Reuters reported on May 19 that Treasury Secretary Scott Bessent said the Trump administration was “not in a rush” to extend the tariff and critical-minerals truce with China, which expires in November. That comment underscored that both sides are still bargaining over timing and scope even as Beijing signals more flexibility. (euronews.com) ### What should readers watch next? November is the next hard deadline because that is when the current truce expires, according to Reuters. Before then, the key tests are whether negotiators formalize the proposed $30 billion-for-$30 billion tariff cuts and whether the Boeing purchase begins to move from political announcement to commercial execution. (usnews.com) China’s commerce ministry said the consultations also covered rare earth export controls and agricultural trade, two areas that could produce additional side agreements if talks continue. Any next step is likely to come through the trade council framework described by Chinese state media on May 20. (news.cgtn.com) (usnews.com)