China and the United States agreed to reducer tariffs on some products to promote bilateral trade, according to a statement from the Chinese Ministry of Commerce.
The ministry issued the statement on Saturday following a two-day summit in Beijing between US President Donald Trump and Chinese leader Xi Jinping.
China affirmed that Beijing and Washington will adopt a series of measures, including the mutual reduction of tariffs on certain productsto expand bilateral trade in areas such as agriculture. He did not provide further details, adding that both teams are currently still negotiating the details.
Trump had suggested that tariffs had not been discussed in his meetings with Xi.
“We’re not talking about tariffs,” Trump told reporters Friday aboard Air Force One. “They are paying substantial tariffs, but we don’t discuss it.”
Bloomberg Economics, in a report released Friday, said it remains unclear what the level of tariffs will be.. If the United States carries out its stated intention to reimpose the previous reciprocal rates, “China would see an increase of around 10% in its tariff rate, which could lead to retaliation.”
The statement confirmed China’s plan to acquire American aircraft, although it did not specify the number or brand. Larry Culp, CEO of GE Aerospace, and Kelly Ortberg, CEO of Boeing Co., accompanied Trump to the Beijing summit, where they met with state officials.
China also stated that it would actively address US concerns over import licenses for its beef plants, as well as issues related to poultry imports from certain US states.
The Commerce Ministry reiterated that both sides agreed to create trade and investment boards to discuss concerns. The US Trade Representative, Jamieson Greer had previously stated that both sides had discussed the creation of a “Trade Board” that would see tariff reductions on at least $30 billion on non-essential products.
China affirmed that the US will address Beijing’s concerns about the automatic detention of dairy and aquatic products from China, the export of potted plants to the US and the designation of Shandong as a zone free of highly pathogenic avian flu.
The US Food and Drug Administration is currently withholding all dairy products from China due to the presence of melamine substances, and some aquatic products due to the presence of unauthorized drugs. That means, in essence, that products will be denied entry unless importers can prove their case.
