China's Commerce Ministry: China and U.S. Agree to Establish Trade Council to Discuss Reciprocal Tariff Reductions
0xBroomberg
The US and China have agreed to establish a Trade Council and will use it to discuss reciprocal tariff reductions — a move that shifts bilateral trade talks from ad-hoc meetings into a standing, institutionalised channel.
What is the Trade Council, and why now?
MOFCOM spokesperson He Yadong announced on May 25 that, per the US-China trade consensus, both sides agreed to establish a Trade Council.
This means → Previous negotiations relied on one-off meetings with no permanent body; the Council gives future talks a fixed track.
In plain terms = Instead of "schedule a meeting, have a meeting," there is now a standing forum that meets on a regular basis.
Reciprocal tariff cuts on the agenda — what does the signal say?
He explicitly stated that reciprocal tariff reductions will be discussed as a cooperation item under the Council.
This means → Tariff cuts have not been excluded from the agenda, but no timeline has been set — they have been put into the process, not locked into an outcome.
Whether reciprocal cuts yield substantive progress will be the key validation point markets watch next.
What is moving on aircraft and agriculture?
He added that US-China trade cooperation in aircraft and agricultural products is mutually beneficial in nature.
Both teams will continue communicating, encouraging and guiding their respective companies to strengthen engagement and expand cooperation.
This reflects a broader pattern: amid the tariff stand-off, both sides are still looking for low-hanging areas to land first — aircraft and agriculture are textbook cases where each side gets something it needs.
Content is for reference only, not financial advice.