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China, US Discuss Tariff Cuts Alongside Boeing Deal

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China, US Discuss Tariff Cuts Alongside Boeing Deal

by Daisy Mae D.
05/20/2026
in Tariffs & Duties

China has confirmed plans to purchase 200 Boeing aircraft following meetings between US President Donald Trump and Chinese President Xi Jinping in Beijing last week, marking one of the largest commercial aviation agreements announced between the two countries in recent years.

China’s Commerce Ministry said the agreement also includes supply guarantees from the United States for aircraft engine parts and other related aviation components. The arrangement is expected to support ongoing aircraft production and delivery schedules while strengthening trade cooperation between both economies.

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Officials from both sides are also discussing an extension of the tariff truce initially agreed upon in October 2025. In addition, negotiators are working toward potential tariff reductions on goods valued at more than $30 billion from each country, according to the ministry.

The Boeing deal was among several trade commitments highlighted during Trump’s visit to China. Discussions also focused on increasing access for American agricultural exports into the Chinese market as both nations continue efforts to stabilize trade relations and encourage economic cooperation.

Speaking to reporters aboard Air Force One after departing China, Trump said the visit resulted in several major trade agreements, including the Boeing purchase. He also noted that further aircraft commitments could follow in the future, potentially expanding the scale of the agreement.

Boeing CEO Kelly Ortberg was part of the US delegation during the trip, alongside Tesla CEO Elon Musk and Nvidia CEO Jensen Huang. The presence of senior executives from major US companies underscored the broader commercial significance of the visit and the importance of the Chinese market for American industries.

In a statement, Boeing described the visit as successful and said it achieved the company’s objective of reopening the Chinese market for aircraft orders. Boeing added that the current agreement represents an initial commitment for 200 aircraft and indicated that additional orders may follow after the first tranche.

Trade discussions between the United States and China have continued since officials from both countries reached an agreement in Kuala Lumpur ahead of a Trump-Xi meeting in South Korea in October 2025. That arrangement extended the tariff truce through November this year and included reductions in US tariffs on Chinese goods, along with a temporary pause on China’s restrictions involving exports of rare earth minerals and magnets.

#GlobalTrade #Tariffs #Boeing #USChinaTrade #SupplyChain

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