US, China close to trade deal lifting most tariffs on Chinese goods

by Kim Boateng Last updated on May 10th, 2019,

The U.S. and China are reportedly nearing a trade agreement that would result in the lifting of most of the sanctions imposed on Chinese goods last year.

Beijing, too, would lower tariffs and other measures impacting U.S. imports, in a deal that is in its final stages of negotiations, The Wall Street Journal reported Sunday.

Movement on the trade deal follows talks that took place in Washington last month, during which the two countries reached an agreement on currency manipulation. Those talks were fruitful enough that last week President Donald Trump said he would delay an increase in tariffs against China planned for March 1.

Persons briefed on the matter told the Journal that both sides faced potential resistance from their home countries that the trade deal’s terms are weighed too heavily in the other’s favor. But an agreement could be reached at a meeting between Trump and Chinese President Xi Jingping expected to take place in late March at Trump’s Mar-a-Lago golf club in Florida, the Journal reported.

China has told negotiators that the removal of the $200 billion in tariffs levied on Chinese goods last year was critical to achieving a deal, Bloomberg reported Sunday, citing persons not authorized to speak publicly about the deliberations.

In return, China is offering to lower tariffs and other barriers on U.S. auto, chemical, farm and other products, the Journal reported.

President Trump on Friday tweeted about the trade situation between the two countries on Friday, saying he had held off on March 1 tariff measures and had asked China “to immediately remove all Tariffs on our agricultural products (including beef, pork, etc.) based on the fact that we are moving along nicely with Trade discussions.”

I have asked China to immediately remove all Tariffs on our agricultural products (including beef, pork, etc.) based on the fact that we are moving along nicely with Trade discussions….— Donald J. Trump (@realDonaldTrump) March 1, 2019

….and I did not increase their second traunch of Tariffs to 25% on March 1st. This is very important for our great farmers – and me!— Donald J. Trump (@realDonaldTrump) March 1, 2019

Leave a Reply