Trump, Xi signal tariff cuts

President Donald Trump and Chinese President Xi Jinping left Beijing this week with a narrow set of trade deliverables centered on farm goods, even as both governments avoided announcing a broader settlement in their tariff fight. China’s commerce ministry said on May 16 that the two sides agreed to expand agricultural trade through tariff reductions and to address non-tariff barriers and market-access issues, but it described the arrangements as “preliminary” and said details would be finalized later. China’s farm imports from the United States fell 65.7% year on year to $8.4 billion in 2025, according to U.S. Department of Agriculture data cited by Reuters. ### What, exactly, did Beijing say it agreed to? China’s commerce ministry said on Saturday that the two countries would promote two-way trade, including agricultural products, through reciprocal tariff reductions across a range of goods. The ministry did not specify which products would get relief or when any reductions would take effect. (usnews.com) The same ministry said both sides agreed to “resolve or make substantive progress” on non-tariff barriers and market-access disputes. On the U.S. side, those issues included registration of beef facilities and poultry exports from certain states; on the Chinese side, the ministry said Washington would work on concerns involving dairy and aquatic products, bonsai exports in growing media, and recognition of Shandong as free of avian influenza. (usnews.com) ### Why are beef plants at the center of the first concrete move? Beijing on May 16 granted five-year registration extensions to 425 U.S. beef plants and approved new five-year registrations for 77 additional U.S. facilities, according to the Chinese commerce ministry account reported by Reuters. Bloomberg reported earlier, on May 14, that China had renewed import licenses for hundreds of U.S. beef plants as the summit opened. (usnews.com) Agriculture Secretary Brooke Rollins said on X on May 16 that China had agreed to implement beef commitments that include resuming imports from 17 U.S. states. Reuters reported that the move reopened a channel that had been largely shut after registrations lapsed last year. ### How much trade is actually at stake? (usnews.com) U.S. Department of Agriculture data cited by Reuters showed China’s farm imports from the United States dropped to $8.4 billion in 2025 from the prior year after rounds of tit-for-tat tariffs. China’s farm imports from the United States still face an additional 10% levy, the ministry said. (usnews.com) 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. Reuters reported that neither government had released details on products, values or volumes tied to that expectation. ### Did the summit produce a broader tariff truce? (usnews.com) Trump and Xi met in Beijing on May 14 and May 15 after preparatory talks between Treasury Secretary Scott Bessent, Trade Representative Greer and Chinese Vice Premier He Lifeng. Before the summit, both sides had already discussed possible Chinese purchases of U.S. agricultural goods and new bodies to manage trade and investment issues. (msn.com) China’s commerce ministry said on May 16 that tariff, agricultural and aircraft arrangements reached during Trump’s visit were still preliminary. Reuters reported that Trump left Beijing after two days of talks marked by ceremony and warm public rhetoric, but with limited detail on concrete outcomes across trade and investment. ### What are traders and officials watching next? (thestar.com.my) Johnny Xiang, founder of Beijing-based AgRadar Consulting, told Reuters that tariff reductions on agricultural products would allow commercial buyers to return to the market. Reuters also reported that market watchers expected a 10% cut in soybean tariffs, though Beijing did not announce that figure officially. (usnews.com) The next step is a technical one. China’s commerce ministry said the agreements would be finalized “as soon as possible,” and earlier reporting said the two governments planned new trade and investment boards to continue negotiations. Those follow-up talks are expected to determine which goods get tariff relief, how much China buys, and whether the farm measures widen beyond beef, soybeans, wheat and sorghum. (usnews.com)