U.S. Proposes $30 Billion China Trade Board as Trump Shifts From Liberalization
Updated
Updated · The Wire · May 7
U.S. Proposes $30 Billion China Trade Board as Trump Shifts From Liberalization
5 articles · Updated · The Wire · May 7
$30 billion to $40 billion of imports on each side could be placed under a proposed U.S.-China “Board of Trade” that would lower tariffs on approved goods and keep others in a high-tariff “canyon.”
The plan, being discussed ahead of Trump’s May 14-15 Beijing summit with Xi, reflects Washington’s conclusion that decades of pressure failed to liberalize China’s state-led economy and that stability now matters more.
Advanced chips would remain off-limits, while the U.S. is pressing for easier access for soybeans, corn and beef after clashes over tech export curbs and China’s rare-earth restrictions.
Tariffs remain the backdrop: U.S. duties on most Chinese imports peaked at 147.6%, and the effective rate was still 31.6% in February, versus 10.7% in January 2025.
Business groups warn managed trade could be inflationary, hard to police and vulnerable to lobbying, while critics say it narrows U.S. ambitions from changing China’s system to simply managing dependence.
Can the U.S. de-risk from China via a trade deal without crippling its own AI ambitions in a global chip supercycle?
As trade reroutes through Asia, is this new deal a real fix or just a new label for a persistent U.S. deficit?
How will managed trade with a defiant China succeed where a similar plan with a compliant Japan once failed?
The $30 Billion U.S.-China Board of Trade: A New Era of Managed Economic Competition
Overview
In May 2026, the United States is preparing a major shift in its trade policy with China by proposing a new 'Board of Trade.' This initiative, set to be discussed during President Trump's visit to Beijing, marks a move away from past efforts to liberalize China's economy. Instead, it introduces a more managed approach, aiming to create a structured framework for trade, especially during times of tension. The Board of Trade is designed to identify which products can be traded and which are too sensitive, bringing predictability and control to U.S.-China economic relations.