Beijing’s
acknowledgment on Wednesday that tariffs were discussed in talks with President
Trump signals it was prepared to push back if the U.S. revives duties.
·
China
said it expects the United States not to increase tariffs further and hinted at
possible retaliation if Washington raises duties again.
·
China’s
Commerce Ministry stated that both countries held detailed discussions on
tariffs during last week’s Beijing summit, contradicting President Donald
Trump’s claim that tariffs were not discussed.
·
Beijing
reaffirmed that U.S. tariff levels should remain within the limits agreed under
the tariff truce reached in South Korea last year.
·
China
confirmed an agreement to purchase 200 aircraft from Boeing, marking the
largest potential Chinese order for Boeing planes in nearly a decade.
·
China
also approved more than 600 U.S. slaughterhouses to resume beef exports to the
Chinese market.
·
Trump
said China could eventually buy up to 750 Boeing planes if cooperation
progresses positively.
·
Boeing
has been seeking to rebuild its position in China after the grounding of the
737 MAX and previous order cancellations.
·
Deliveries
of Boeing aircraft to China had resumed in 2024 but slowed again amid renewed
trade tensions.
·
The
specific aircraft models included in the new agreement have not yet been
disclosed.
·
China
restored licenses for 690 American beef suppliers after earlier confusion over
approvals.
·
The
revival of U.S. beef exports may have limited economic impact because China is
trying to protect domestic cattle farmers from excessive imports.
·
The
October tariff truce had maintained U.S. tariffs on Chinese goods at 30
percent.
·
In
February, several Trump-era tariffs were struck down by U.S. courts, after
which the White House imposed a temporary 10 percent tariff under Section 122.
·
U.S.
Treasury Secretary Scott Bessent has indicated that the administration may
revive tariffs through Section 301 investigations linked to forced labor and industrial overcapacity.
·
Analysts
believe China’s latest statements establish a clear “red line” that tariffs
should not rise beyond current levels.
The Chinese government on Wednesday sought
to draw a line on trade tensions with the United States, saying that both sides
had agreed not to raise tariffs further while signaling that it could retaliate
if Washington did so again.
China also confirmed for the first time that
it would buy American beef and Boeing airplanes, two deals that President Trump
touted after his summit with China’s leader, Xi Jinping, last week.
In a statement on Wednesday, China’s Ministry
of Commerce said that Beijing had agreed to buy 200 Boeing planes, a transaction
that would mark the largest single Chinese purchase of the American manufacturer’s
aircraft in nearly a decade. The ministry also confirmed that Beijing had approved
American slaughterhouses to resume exporting beef to China, giving a green light
to more than 600 U.S. companies after an initially muddled notice last week.
The announcements came in a online posting by the Ministry of Commerce five days after
the two leaders’ meeting in Beijing. Mr. Trump and other American officials have
since hailed the summit’s success and the commercial commitments secured from Beijing.
But critical points of friction remained
unresolved, particularly over tariffs. Mr. Trump, for his part, told reporters afterward:
“We didn’t discuss tariffs.”
On Wednesday, China’s commerce ministry pushed
back on that account, saying the U.S. and China had “engaged in in-depth discussions
on tariffs” during the latest negotiations. The ministry added that it hoped Washington
would “honor its commitments” and ensure that U.S. tariff levels on Chinese goods
would “not exceed the level stipulated” during talks last fall in South Korea, when
the two sides had agreed to a tariff truce.
It was the second time a Chinese official
said tariffs were discussed during last week’s talks, a sign that Beijing may be
laying the groundwork for retaliation in the future, said Dan Wang, China director
at Eurasia Group.
“It reflects a base line for China that tariffs
cannot go up,” Ms. Wang said. “Trump tried to downplay it. China will likely retaliate
if tariffs do go up.”
Mr. Trump and Mr. Xi agreed to a yearlong
truce in October that left tariffs on Chinese goods at 30 percent. But in February,
those tariffs, along with Mr. Trump’s so-called reciprocal tariffs on other countries,
were struck down after the Supreme Court ruled them illegal. The White House responded
by imposing a 10 percent tariff on all imports under a temporary trade clause known
as Section 122.
U.S. Treasury Secretary Scott Bessent has
since said the administration plans to revive the tariffs through investigations
into forced labor and industrial overcapacity under Section 301, another trade provision.
Experts have argued that the investigations are directed at China.
Mr. Trump, meanwhile, has preferred to emphasize
the handful of trade wins.
Boeing, in particular, has long sought to
regain its footing in the Chinese market, and Kelly Ortberg, the company’s chief
executive, was among the American business leaders who accompanied Mr. Trump to
Beijing. Nearly one in seven commercial planes in operation today flies in China.
But Boeing’s relationship with Beijing deteriorated
after the worldwide grounding of the 737 MAX aircraft following two crashes less
than five months apart that killed a total of 346 people. In 2020, citing the coronavirus
pandemic, China canceled an outstanding order for 29 of the jets.
Boeing resumed deliveries to China in 2024,
but those shipments stalled last year as Mr. Trump raised tariffs on Chinese goods.
It remains unclear which aircraft models
Beijing has agreed to purchase.
Mr. Trump and Boeing have said that Beijing
would reopen its market to the American aerospace company. But Chinese officials
initially avoided comment.
That changed on Wednesday. “Aviation is a
key area for deepening mutually beneficial cooperation between China and the United
States,” the commerce ministry said in its statement.
Speaking to reporters aboard Air Force One
on Friday, Mr. Trump said that China had agreed to purchase “approximately 400,
450 engines, 200 planes and a promise of up to 750 if they do a good job.”
It also remains unclear how much American
beef China will ultimately buy after reinstating the registration of U.S. beef suppliers.
In the end, Beijing granted licenses to 690
American companies, after a confusing turn of events that briefly seemed as
though official had reversed course and approved about 200.
Still, the restoration of the U.S. beef trade
may prove more symbolic than substantial. Beijing has been trying to shield domestic
cattle farmers from a flood of imported meat.