"China to Open Markets...Agrees to Eliminate Non-Tariff Barriers"
U.S.-China Relations "Very Good"
China Agrees to Halt Fentanyl Distribution...Hints at Lifting Fentanyl Tariffs
U.S. President Donald Trump announced on May 12 (local time) that China had agreed to open its markets in the first round of tariff negotiations, resulting in a "complete reset" of trade relations between the two countries. He also stated that there is a high possibility he will speak with Chinese President Xi Jinping this weekend.
Speaking to reporters at the White House, President Trump described the first official U.S.-China trade negotiations, which took place on May 10-11, as "a very excellent trade agreement." He emphasized, "The best part of this deal is that China has agreed to open its markets to American companies."
He explained that China had agreed to halt and eliminate "non-monetary (non-tariff) trade barriers," adding that the agreement still requires a formal signing process. He continued, "They agreed to open up China, and to do so completely. I believe this will be a great thing for both China and us, and it will also be very good for unity and peace."
He clarified that the agreement does not include product-specific tariffs, such as those imposed or scheduled to be imposed by the United States on all imports worldwide, including automobiles, steel·aluminum, and pharmaceuticals.
President Trump stated that relations with China are friendly and added, "I will likely speak with President Xi this weekend."
He said, "The U.S.-China relationship is very good," and added, "China is suffering very serious damage, but we are not trying to hurt China." He continued, "They (China) are closing factories, and a lot of anxiety is spreading. They were very pleased to be able to do something with us."
He also indicated that, as China has agreed to crack down on fentanyl, there is a possibility that the 20% tariff on fentanyl could be lifted in the future.
President Trump stated, "China has been sending fentanyl to the United States, and we have imposed a 20% tariff on Chinese fentanyl." He added, "They have agreed to stop exporting it, and they will be compensated by not having to pay hundreds of billions of dollars in tariffs."
Previously, following their first official trade negotiations in Geneva, Switzerland last weekend, the U.S. and China announced that they would each lower their reciprocal tariff rates by 115 percentage points. As a result, the U.S. tariff rate on Chinese goods will drop from 145% to 30%, and China's tariff rate on U.S. goods will fall from 125% to 10%. This tariff reduction will be in effect for 90 days. Since President Trump took office, the U.S. and China had escalated their trade war by raising tariffs into triple digits in a game of brinkmanship. Now, with the first round of negotiations yielding better-than-expected results, optimism is growing regarding the possibility of additional agreements in the future.
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