The United States and China appear to be closer than ever to a ceasefire in the ongoing Trade War—and it could include Washington being forced to roll back tariffs, in order for “Phase One” to be complete…
There could still be hope for de-escalation in the Trade War before the US slaps tariffs on virtually all consumer products from China, according to reports, which claim “The White House is considering rolling back levies on $112 billion dollars’ worth of Chinese imports, including clothing, appliances, and flat screen monitors, that were introduced at a 15 percent rate on September 1.”
By agreeing to this, the US would be meeting a key demand set out by Chinese negotiators who have already promised to resume purchases of American farm products like pork and soybeans, and to follow updated measures securing intellectual property and deterring currency manipulation.
A spokesperson for China’s foreign ministry said the two sides are making progress with talks, but rolling back tariffs is the only way to reach a resolution.
“It’s not a correct way to resolve the trade issue by slapping tariffs, nor does escalated tension and confrontation serve the interests of anyone involved. The trade consultation between China and the US has made some progress and is moving forward,” Geng Shuang said.
But the current Phase One of the trade deal does not mention the looming threat of US tariffs on virtually all remaining Chinese imports, which is supposed to go into effect next month. However, the hope seems to be that Trump will change his mind if progress is made.
Reports are now claiming the deal is also “expected to include a US pledge to scrap tariffs scheduled for December 15 on about $156 billion dollars’ worth of Chinese imports, including cell phones, laptop computers and toys.”
Hopes for a trade deal are also high among US allies in Europe. French President Emmanuel Macron attended the China International Import Expo in Shanghai on Tuesday, where he argued that the uncertainty surrounding the Trade War has become the leading factor impeding global growth.
“The trade war only results in losers. We are seeing the effects: Trade tensions between the two major economic powers are already weighing heavily on global growth. Discussions are currently underway, and I hope that they can lead to an agreement that will ease tensions and safeguard the interests of China’s and the United States,” Macron said.
A planned meeting between leaders from the US and China at an international summit in Chile this month has since been canceled, due to mass clashes between protesters and riot police that have left 20 people dead.
Now the US and China are determining both what will be included in phase one of the deal, and where they will meet to sign it, and there is a good chance Trump will include a new demand to sign the deal on American soil.