Trump signs order to cut tariffs on Chinese Goods after Fentanyl agreement with Xi

US President Donald Trump on Tuesday signed an executive order to reduce fentanyl-related tariffs on Chinese products, sealing a key component of his recent agreement with Chinese leader Xi Jinping after their first face-to-face meeting in years.

Earlier this year, shortly after returning to office, Trump had imposed an additional 20 percent tariff on Chinese imports over Beijing’s alleged involvement in the fentanyl supply chain.

However, following last month’s summit between Trump and Xi in Busan, South Korea, China reportedly intensified efforts to curb the export of chemical precursors used in the production of fentanyl that reaches the United States.

In return, Washington agreed to slash the extra tariffs on Chinese goods from 20 percent to 10 percent, effective November 10.

Tuesday’s executive order formally implements that deal, while mandating US officials to closely monitor Beijing’s adherence to its commitments.

The discussions between both leaders also resulted in the suspension of any plans to introduce higher retaliatory tariffs until November 10, 2026.

Relations between the world’s two largest economies have been strained throughout the year as each imposed escalating tariffs on the other’s exports. At their peak, duties on both sides soared into triple-digit levels, severely disrupting trade flows.

Recent high-level talks between Washington and Beijing have brought a fragile truce, though tensions remain high over issues such as export restrictions and technology controls.

Trump and Xi’s latest meeting appears to have extended that truce for another year.

AFP