Last month President Trump indicated that the US and China were nearing “phase one” of their trade deal. It has, however, emerged that Beijing is pushing Washington to do away with tariffs it imposed in September as part of the trade deal.
The signing of the trade deal could happen this month
President Trump and Chinese President Xi Jinping are likely to sign the deal this month, although the parties are yet to determine a location. Initially, the deal was to be signed in Chile during the APEC summit, but Chilean president canceled the summit because of protests. People familiar with the matter indicated that part of the requirement for the deal is for the US to scrap tariffs expected on December 15. The US was to enact tariffs on $156 billion of imports from China, which includes toys, laptops, and cell phones.
According to a US official, they are considering the fate of the tariffs as part of the trade negotiations that could be signed this month. Sources indicate that the Chinese negotiators want the US to remove the 15% tariffs effected on September 1 on $125 billion of Chinese imports. Beijing is also seeking from the previous 25% tariffs in $250 billion of Chinese goods on semiconductors, machinery, and furniture.
Remove tariffs China tells the US
Politico reported the request by China to do away with the September 1 tariffs. According to the Financial Times, Washington is also considering rolling back the tariffs that cover flat-screen TVs, clothing items, Bluetooth headphones, and smart speakers.
China program director at Eurasia Ralph Winnie indicated that if the US and China wrap up the trade deal will be a huge boost for the world’s leading economies. This could also hand President Trump a win among farmers who have suffered since the trade war began.
On Tuesday, President Xi called on countries to shun protectionism. He restated the country’s commitment to having an open economy as well as strengthening intellectual property rights protection. However, there is growing skepticism regarding the promises of the Chinese from foreign countries about its openness.