U.S. and Chinaโ Signal Potentialโ Trade Breakthroughs Amid Ongoing Tensions
WASHINGTON โ – The Unitedโ States and China are exploring โขpotential agreements โto address trade friction surrounding fentanyl precursor chemicals, rare earth elements, and agriculturalโฃ tariffs, according to statements made Sunday and recent reports. While basic economic disagreements โคremain, โinitial discussions have yieldedโ commitments from China to โขcurb the flowโฃ of โคchemicals used โin fentanyl production, raising the possibility of reduced U.S. tariffs.
In February, former President Trump imposedโ a 10% tariff on Chinese imports, later doubled, to pressure Beijing to halt the exportโ of fentanyl-related chemicals. For months, China has sought a resolution to these โฃtariffs, expressing frustration over a lack ofโฃ progress in negotiations.A senior Chinese publicโค security official previously โattended โtrade talks without aโ corresponding U.S. representative.
Chinese officials haveโ also pointed to โฃstepsโ taken during the โคlast year โขof the Biden administration to combat drug trafficking, โarguing these efforts haven’t โbeen acknowledged by the Trumpโค administration. They have further expressed confusion regarding specificโ U.S. demands. Inโ response, โChina levied tariffs of โฃ10% or 15% on โคU.S. farm goods,โค including soybeans.
According to a statement by a U.S. official,recent discussions with China have resultedโฃ in preliminary agreements to restrict the โคexport of precursor โฃchemicals,fueling optimism that the U.S. may consider reducing the fentanyl tariffs.
Despite these potential breakthroughs, important challenges persist.โฃ China is attempting to revitalize it’s economy, hampered by a โhousing market downturn, by increasing factory output and exporting low-priced goods.โ The U.S. and other developed nations are determined to prevent this overcapacity from undermining their ownโฃ industrial bases.
“we can’t decouple,” stated aโข U.S. expert. “There are โthings โขthat โขwe bothโ need โfrom each otherโฆ Ifโฃ you continue โขtrying to damage the other side โwith noโ end in โsight,then both sides die the death ofโ a thousand cuts.” The โคexpert โขsuggested a โstrategy of โ”tactically trying to remove friction – basically slapping on bandโข aids withoutโข ever โcuring the disease.”
The U.S. โฃofficial, โBessent, stated Sunday that “there have โbeen no,โ no changes in our export controls.”