China says U.S.-China reached 'preliminary understanding' to cut tariffs after Trump–Xi talks

China’s Commerce Ministry said on May 16 that China and the United States had reached a preliminary understanding to lower some tariffs after President Donald Trump’s visit to Beijing, adding a new trade claim to a summit that had produced few public specifics. The ministry said the two sides had formed a consensus on tariff arrangements, agreed in principle to cut tariffs on some products on an equivalent scale, and would set up new trade and investment councils. Trump had said a day earlier that tariffs were not discussed in his talks with Chinese President Xi Jinping. The conflicting public accounts have left the scope, timing and legal form of any tariff changes unclear. ### What did Beijing say the two sides actually agreed to? China’s Commerce Ministry said the two countries achieved “positive outcomes” in recent economic and trade consultations and identified five areas of initial results. The ministry said the two sides would continue implementing outcomes from earlier talks and had reached consensus on “relevant tariff arrangements.” The ministry said a new trade council would discuss tariff reductions on specific products and that both sides had “agreed in principle” to lower tariffs on products of concern on an equivalent scale. It also said the countries would establish trade and investment councils to handle market-access and investment complaints. Beijing also said the two sides would seek to resolve non-tariff barriers involving agricultural goods. (english.gov.cn) The ministry cited Chinese concerns over U.S. detention measures affecting dairy and aquatic products, bonsai exports and recognition of avian-influenza-free zones in Shandong, while saying China would move on U.S. concerns over beef plant registrations and poultry exports from some U.S. states. ### What did Trump say after leaving Beijing? Donald Trump said on May 15 that tariffs were not discussed during his talks with Xi, according to reports from Bloomberg and other outlets. Bloomberg reported that Trump said he did not discuss extending a tariff truce with Xi even as both governments agreed to create trade and investment boards. (english.gov.cn) News reports quoting Trump’s remarks said he told reporters, “We didn’t discuss tariffs. It wasn’t brought up.” That public denial sits uneasily with Beijing’s later statement that tariff arrangements were one of the initial outcomes of the summit-related consultations. ### Were the tariff talks part of the leaders’ meeting or the teams’ talks? (bloomberg.com) Xinhua’s account of the May 14 Xi-Trump meeting said Xi told Trump that the two countries’ economic teams had reached “generally balanced and positive” results the previous day. That wording suggests at least some of the trade understandings were shaped by negotiators around the summit rather than settled solely in the leaders’ face-to-face session. (newsmax.com) China’s ministry used similar language, saying the outcomes came from “economic and trade teams” during recent consultations. The statement did not specify which products were covered, how large the tariff cuts would be, or when any reductions would take effect. ### What else was included besides tariffs? China’s ministry said the two sides agreed to promote two-way trade, including agricultural trade, through mutual tariff reductions on a range of products. (mofcom.gov.cn) It also said they reached arrangements covering China’s purchase of U.S. aircraft and U.S. guarantees for supplies of aircraft engines and related parts to China. (english.gov.cn) Bloomberg reported that Chinese Foreign Minister Wang Yi said the new councils would address mutual concerns over market access and agricultural products. CNBC separately reported that Beijing linked tariff reductions to broader farm-market access steps after the summit. ### Why are the details still unsettled in public? (english.gov.cn) China’s ministry said the two sides were still consulting on details and that their economic and trade teams would work to finalize the outcomes “at an early date.” That means the public record still lacks the product list, tariff rates, implementation schedule and any formal U.S. action needed to put the changes into effect. (bloomberg.com) The next public markers are likely to come from the new trade and investment councils or from follow-up statements by U.S. and Chinese negotiators. China’s official account said Xi and Trump also agreed to support this year’s Asia-Pacific Economic Cooperation leaders’ meeting and the Group of 20 summit, giving both sides additional dates and forums for further announcements. (mofcom.gov.cn) (english.gov.cn)