China and U.S. reach preliminary agreement to lower certain tariffs

China’s commerce ministry said on May 16 that Beijing and Washington had reached a preliminary agreement to lower some tariffs, adding a limited trade outcome to President Donald Trump’s two-day visit to Beijing. The ministry said the two sides would set up separate trade and investment councils and use the trade body to discuss tariff cuts on specific products. The statement also said both governments agreed to push two-way trade, including in agricultural products, through reciprocal tariff reductions on a range of goods. (politico.eu) Beijing did not identify the products covered or give a timetable, and it described the arrangements as preliminary. (srnnews.com) ### What exactly did Beijing say was agreed? China’s Ministry of Commerce said the two sides “agreed in principle” to lower tariffs on products of respective concern on an equivalent scale through the new trade council. The ministry said that body would discuss tariff reductions on specific products and broader cuts on some unspecified goods, including agricultural products. The same statement said Beijing and Washington would also establish an investment council. Chinese officials did not publish a joint text with Washington alongside the announcement, and the ministry did not provide product lists, tariff rates or implementation dates. (politico.eu) ### Why are officials calling it preliminary? The commerce ministry said on May 16 that the tariff, agricultural and aircraft arrangements reached during Trump’s visit were “preliminary” and would be “finalised as soon as possible.” That wording signaled that negotiators had outlined a framework rather than completed a broad tariff reset. (politico.eu) The ministry’s language also contrasted with Trump’s remarks on Air Force One on May 15, when he said tariffs had not come up in his meetings with Chinese President Xi Jinping. The New York Times reported that Beijing’s statement indicated tariffs had in fact been discussed during the summit. (politico.eu) ### Which trade areas appear to be moving first? Agriculture was the clearest sector named in Beijing’s statement. The ministry said the two countries would resolve or make substantive progress on non-tariff barriers and market access issues involving some agricultural products. (srnnews.com) Reuters reported that China’s farm imports from the United States still face an additional 10% levy after last year’s tariff rounds, and U.S. Department of Agriculture data showed that trade in those goods fell 65.7% year on year to $8.4 billion in 2025. Reuters also reported that Beijing on May 15 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) U.S. Secretary of Agriculture Brooke Rollins said on X that China had agreed to implement beef commitments that included resuming imports from 17 U.S. states. (politico.eu) U.S. Trade Representative Jamieson Greer said on May 15 that Washington expected China to buy “double-digit billions” of U.S. farm goods over the next three years, though neither side released a detailed list of products or volumes. ### How does this fit with the aircraft announcements? Trump said on May 15 that China had agreed to buy 200 Boeing aircraft and General Electric engines. China’s commerce ministry later said the two sides had reached arrangements on aircraft purchases from the United States and on U.S. guarantees for the supply of aircraft engines and related parts to China. (srnnews.com) Those aviation steps were announced alongside the tariff and farm measures, but Beijing grouped all of them under the same “preliminary” label. That left open the question of when contracts, licenses or tariff changes would take effect. (srnnews.com) ### What should readers watch next? The commerce ministry said the next formal step is the creation of the trade and investment councils, with tariff cuts to be discussed through the trade body and agricultural market-access issues handled in parallel. Beijing said the arrangements would be finalized as soon as possible, but it did not set a date for the first meetings. (politico.eu) Politico reported that Xi and Trump are expected to meet again when Xi makes a state visit to the White House in September. Any product lists, tariff schedules or written implementing documents would likely emerge before or around that next round of leader-level talks. (politico.eu)