Days after US President Donald Trump visited China, Beijing’s commerce ministry announced on Wednesday that Beijing will collaborate with Washington to lower taxes on commodities worth tens of billions of dollars.
Before Trump and Chinese President Xi Jinping met in South Korea in October and agreed to a one-year truce, the two biggest economies in the world spent the majority of 2025 mired in an intensifying trade war.
Following their meeting last week, “both sides agreed in principle to discuss a framework arrangement for reciprocal tariff reductions on products of equivalent scale,” according to a statement from the ministry. As a result, a trade council was established.
According to an online statement attributed to an unknown commerce ministry official, the planned tariff cuts will impact items valued at $30 billion (€27.3 billion) or more on each side. Zhiwei Zhang of Pinpoint Asset Management stated that the prospective tariff reductions are “not significant enough to change the market’s GDP forecast,” nevertheless. However, this is a start in the right direction,” he continued.Global investors will benefit as long as the two nations continue to communicate in order to stabilize their bilateral relations.
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