WSJ: Trump looking to lower tariffs on Fentanyl

The WSJ is reporting that Trump and Xi to discuss lowering China tariffs on Fentanyl crackdown

• Tariff rollback linked to fentanyl controls: The U.S. would reduce its 20% fentanyl-related tariff on Chinese goods to about 10% if Beijing enforces stronger restrictions on exports of precursor chemicals used to make fentanyl.

• Impact on overall tariffs: Lowering the fentanyl tariff would bring the average U.S. tariff on Chinese goods down from roughly 55% to about 45%, narrowing the gap between China and other trading partners.

• Competitiveness shift: The tariff cut could improve China’s price competitiveness versus countries like India and Brazil (which face 50% tariffs) and lessen incentives for Chinese firms to reroute goods through Southeast Asia, where shipments face 40% tariffs.

• Trade reciprocity: In return, China would likely resume U.S. soybean purchases once fentanyl tariffs are lifted, easing pressure on U.S. farmers.

• Broader stabilization: The framework would pause potential new U.S. tariffs, delay China’s rare-earth export controls, and help defuse trade tensions between the two largest economies.

This article was written by Greg Michalowski at investinglive.com.