China, U.S. Agree to Phased Tariff Rollback as Deal Progresses

Galtero Lara
Noviembre 8, 2019

The US and China have agreed to roll back tariffs as part of any new trade deal, the two sides have said. One possible location was London, where the leaders could meet after a North Atlantic Treaty Organisation summit that Trump is due to attend from December 3-4, the official said. "It's under consideration but nothing decided", the official said.

Other sites are possible in Europe and Asia, but the former is more likely, with Sweden and Switzerland among the possibilities. Iowa, which Trump has suggested, appeared to have been ruled out, the official said.

In a step towards a trade deal, Beijing on November 7 announced that China and the us agreed to remove additional tariffs on their goods, local media reported.

"There's nothing that Trump hates more" than someone backtracking on a deal, he said.

U.S. Treasury prices gained on Wednesday on word that the talks could be delayed, while some investors also repositioned after a three-day sell-off.

Later in the day, a US official confirmed that the two sides have agreed on a tariff rollback.

"In the past two weeks, top negotiators had serious, constructive discussions and agreed to remove the additional tariffs in phases as progress is made on the agreement", Gao said.

The prospect of an agreement sent stock markets soaring to all-time highs and prompted the International Monetary Fund (IMF) to say a deal easing trade tensions between the United States and China could persuade its officials to revise up forecasts for global growth next year.

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China's embassy in Washington did not immediately respond to requests for comment.

The stock market is on a high during Thursday trading on news that the United States and China have reached an agreement to roll back tariffs scheduled to take effect next month.

The proportion of tariffs cancelled for both sides to reach a "phase one" deal must be the same, but the number to be cancelled can be negotiated, he added, without elaborating. But U.S. officials say the two governments are looking for a different location.

A source briefed on the talks told Reuters on Tuesday that Chinese negotiators want Washington to drop 15% tariffs on about $125 billion worth of Chinese goods that went into effect on September 1.

But Chinese trade expert Huo Jianguo said the move was a vindication of Beijing's long-held position on the punitive tariffs.

Trump had even asked American firms to stop working with their Chinese counterparts.

"The spectacle of the Chinese propaganda press putting out information like that, they're just negotiating in public, trying to push us in a direction, but the president makes these decisions", he said.

"I think we're in good shape, we're making good progress, and there's no natural reason why it couldn't be" signed this month, U.S. Commerce Secretary Wilbur Ross told Bloomberg Television in an interview Sunday in Bangkok.

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