President Trump said on Friday that he would consider shaving China’s tariff rate by another 10% if the country actively works to stop the flow of fentanyl and precursor chemicals used to manufacture the drug.
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“As soon as we see that, we’ll get rid of the other 10%,” Trump told reporters on Air Force One. Earlier this year, he initiated a 20% tariff on China in response to its role in exporting the drug.
Trump and Xi Strike One-Year Trade Truce
On Thursday, the U.S. and China reached a one-year trade truce following a meeting between Trump and Chinese President Xi Jinping. As part of the agreement, Trump agreed to cut the fentanyl tariff in half to 10%, bringing China’s overall tariff rate to 47% from 57%.
The truce included several other provisions, such as China promising to boost purchases of U.S. soybeans and energy and limiting rare earth export restrictions. In exchange, Trump stepped back from his threat of raising the tariff on Chinese goods by an additional 100% and agreed to halt fees on ships manufactured in China docking in U.S. ports.
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