US, China Agree to Cut Tariffs, Details Unclear

China and the United States have agreed to reduce tariffs on "relevant products" following a two-day summit in Beijing between President Donald Trump and Chinese leader Xi Jinping, though specific details regarding the percentage of reduction, affected products, and implementation dates remain unspecified. The Chinese Commerce Ministry announced on Saturday that both parties have agreed "in principle" to lower tariffs on products that cause concern, marking a tentative step toward easing trade tensions between the world's two largest economies. The summit resulted in the establishment of a "Trade and Investment Council" as a communication channel between both countries to address commercial disputes. Additionally, both sides agreed to expand bilateral trade in areas including agricultural products through mutual tariff reductions on a certain range of goods. China also committed to actively addressing US concerns regarding import licenses for beef and poultry products from certain American states. A notable outcome involves aircraft purchases, with both countries reaching agreements on China's acquisition of US planes and the US guarantee to supply engines and aircraft parts to China. GE Aerospace CEO Larry Culp and Boeing CEO Kelly Ortberg accompanied Trump to Beijing for these discussions. The Commerce Ministry stated that both countries "can find solutions to problems through dialogue and cooperation," though Bloomberg Economics noted that if the US reimposes previous reciprocal tariff rates, China could face an approximately 10 percent increase in its tariff rate, potentially prompting retaliation. The US will address Chinese concerns regarding the automatic detention of dairy and aquatic products, as well as export issues for potted plants and avian influenza restrictions on poultry from Shandong province.