US To Roll Back Some China Tariffs If Beijing Cracks Down On Export Of Fentanyl Precursor Chemicals

The US is considering rolling back tariffs on China in exchange for China cracking down on fentanyl precursor chemical exports. China is expected to implement stricter controls on these exports, and in return, the US might halve its 20% fentanyl-related tariff. This could bring the average US tariff on Chinese goods closer to tariffs on goods from other countries, potentially altering global trade dynamics. This change would reduce the advantage of Chinese firms transshipping goods through Southeast Asian nations and encourage more direct trade. The US and China are also expected to reduce port fees on each other's ships. China is expected to agree to significant purchases of American soybeans, benefiting US farmers. As part of the deal, China is expected to delay stricter controls on rare earths, preventing further trade escalation. The US is also expected to freeze potential new policy actions that China sees as harmful. The agreement encompasses several areas, including export controls, reciprocal tariffs, trade expansion, and port fees. These agreements are preliminary, contingent on the leaders' discussions, and subject to future negotiations. The FBI Director will travel to Beijing to discuss the fentanyl issue.