WSJ: US to Ease Tariffs If China Controls Fentanyl Chemicals

The United States may reduce tariffs on China if Beijing acts to limit exports of fentanyl-producing chemicals.

It's an idea President Donald Trump and Chinese President Xi Jinping are expected to discuss this week, The Wall Street Journal reported Tuesday.

According to the report, the U.S. could reduce its current 20% fentanyl-related tariffs on Chinese goods by up to 10 percentage points if China agrees to tighten controls on the export of precursor chemicals used to manufacture fentanyl, a synthetic opioid linked to thousands of drug-related deaths each year.

If the U.S. reduces the fentanyl tariff on Chinese goods to 10%, the average tariff on most Chinese imports would drop to about 45%, bringing them more in line with rates applied to other U.S. trading partners and potentially making Chinese products more competitive in American markets.   

In February, Trump imposed a 10% tax on Chinese imports to push Beijing to address chemicals used in fentanyl production, doubling it a month later to 20%.

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