Countries agreed to discuss reciprocal cuts on products of equivalent value
The Ministry of Commerce of China announced this Wednesday (May 20, 2026) that Beijing and Washington have reached a preliminary understanding to negotiate a reciprocal tariff reduction. The measure integrates the results of commercial talks held between the 2 countries in Seoul, in South Koreabefore in Beijing.
According to the Chinese statement, the trade teams of the 2 countries agreed, in principle, to discuss an arrangement to reduce tariffs on products of “equivalent scale”. The text states that each side must include products worth US$30 billion or more. Beijing’s expectation is that these items will have most-favored-nation or even lower tariffs. Read , in English (PDF – 87 kB).
China also said it expected the USA comply with the commitments made in previous rounds and do not raise tariffs above the level defined in the Kuala Lumpur negotiations. In October 2025, the 2 countries had agreed to suspend part of the tariff and non-tariff measures until November 10, 2026.
Here are the main points cited by the Chinese Ministry of Commerce:
- tariffs – the 2 countries will negotiate a reciprocal reduction model on products of equivalent value;
- bilateral councils – China and the USA agreed to create a trade council and an investment council;
- agro – the 2 sides say they have reached a consensus on non-tariff barriers and access to agricultural markets;
- rare earths – Beijing has said it will review US concerns about critical minerals within Chinese legislation;
- Boeing – China confirmed that its airline sector will purchase 200 aircraft from the North American manufacturer, based on commercial criteria.
The announcement was made after , from May 13th to 15th. During the trip, the US should be “partners, not rivals”. having closed “incredible agreements” with the Chinese leader, but did not detail all the points before returning to the United States.
This had already been confirmed during Trump’s visit to Beijing. The agreement represents the first major Chinese order from the North American manufacturer in almost 10 years.
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