USA and China are finally considering rolling back some of the trade tariffs to seal the partial trade deal which is being actively negotiated. A senior official was quoted saying that if there is a deal, then tariff removal will be on paper for sure. Both nations have agreed to this first phase of negotiation as per President Trump. This move comes in light of the preparation to end the year-long trade struggle between the nations which has penalized hundreds of billions of dollars to the working class businessmen.
Myron Brilliant, the executive VP and head of international affairs at the US Chambers of Commerce has said that both governments will be compromising in order to close the deal and move on. This so-called first phase will allow Chinese companies to purchase farm goods from America and currency manipulation deterring. It will also include IP provisions and open up the Chinese industry to America. Trump will no longer be imposing fresh tariffs on the 15th of December, 2019.
The foreign ministry of China seemed positive about the talks saying that negotiations are on. Trump administration, on the other hand, seemed to be looking to cut tariffs of 15% which are worth $111 billion which were imposed on the 1st of September. Retailers and apparel producers have mainly been on the receiving end of this tariff increase.
Negotiations are not even close to over yet, but Trump and Jinping are yet to sign an official trade deal. Trump believed that these tariffs acted as economic barriers to imports which harmed American industries. Most officials, however, regretted and condemned the tariffs imposed on the 1st of September as they affected the price and sales of imported consumer goods.
Chinese officials and the international business community have been seeking to build support for reducing tariffs in exchange for farm product purchases. Some tariffs being removed would widen the scope of the first phase of the deal. This would give Trump an opportunity to show a broader deal initially to establish that the next two phases of this deal do not fall through.
Structural issues that affect the US and its industries will be discussed in the coming phases.
Most major structural issues that affect U.S. businesses would likely be left to future negotiations. The first phase is said to be in the works and would be signed at a gathering of Asia Pacific leaders which was to take place in Chile, but this event has now been canceled due to civil rights protests. Washington and Beijing are now working to find another location to have the leaders meet and sign the agreement.
President Trump has been quoted by members of the press saying that if the deal is agreed upon, then the place to sign it will come easy too. “It’ll be someplace in the US”, he said.