Trump teases lowering fentanyl-linked tariffs on China ahead of meeting with Xi Jinping, cites reason for big step
US President Donald Trump hints at lowering fentanyl-linked tariffs on China ahead of his meeting with Xi Jinping, citing a reason for the big step.
US President Donald Trump said on Wednesday that he expects to lower fentanyl-related tariffs on China. The announcement came ahead of a meeting with Chinese leader Xi Jinping in South Korea.
"I expect to be lowering that because I believe that they're going to help us with the fentanyl situation," Trump told reporters on Air Force One when asked about the tariffs.
As he headed to South Korea on Wednesday, a day before he’s slated to meet Xi Jinping, Trump said, “China's going to be working with US law enforcement on fentanyl.”
Trump tariffs on China
Trump had earlier announced plans to hike levies on most Chinese goods by 100% on 1 November. He said last week that the tariff would rise to 157% - “a record-setting level. It's not sustainable for them.”
The US President accused China of using Venezuela as a transit point for fentanyl to evade US and Mexican port controls.
When asked whether China is smuggling fentanyl into the US via Venezuela, Trump said, "They are doing that. But they are paying a 20% tariff right now because of fentanyl."
He claimed China loses $100 billion with the 20% tariff.
Trump-Xi meeting
US President Donald Trump will meet Chinese President Xi Jinping in South Korea to push for a new trade deal. All eyes are on the crucial meeting, which will be held on 30 October during a regional summit.
The leaders of the world’s two largest economies will seek to resolve their trade tensions. The meeting is expected to de-escalate the trade tensions, which have rattled the global economy.
Trump confirmed on Tuesday, 28 October, that he would be meeting Xi Jinping in South Korea, calling it a “fantastic” and “big” meeting that he said would “work out really well.”
“I will be meeting President Xi today...a very fantastic meeting...It's a big meeting. I think it's going to work out really well. It's going to be great for everybody,” Donald Trump said.
What to expect from Trump-Xi meeting
The Wall Street Journal reported Tuesday that Trump is considering cutting the 20% fentanyl-linked tariff to 10% on Chinese goods.
According to Bloomberg, the reduction would be a substantial concession to Beijing, which is eager to reduce the tariff burden on goods it sends to the US.
Halving the fentanyl tariff would reduce the average tariff on most Chinese imports to around 45% — assuming Trump also holds off on other threatened tariffs, the report added.
Meanwhile, China plans to make a substantial soybean purchase, while the US will hold off on threatened export controls on software that would restrict Chinese access to a broad swath of technology.
The two sides are also expected to agree to reduce shipping fees and approve the sale of the US operations of ByteDance Ltd’s social video app TikTok to a consortium organised by the Trump administration.
US-China meeting in Malaysia
Chinese and US officials reached a broad framework agreement over the weekend in Malaysia, setting the table for Xi and Trump to finalise a trade deal that could roll back many of the tariffs, fees, and export restrictions threatened or implemented in recent weeks.