US Trade Representative Robert Lighthizer says that more work remains on a deal that will ensure that Beijing will follow through on its commitments.
WASHINGTON: The world’s two largest economies are nearing the finish line on a trade deal that could be signed by President Donald Trump and his Chinese counterpart Xi Jinping as early as this month. But that doesn’t mean the trade war ends.
It had been set to take effect Mar 1, but now the rate will remain at 10%, according to a statement from the US Trade Representative’s office.China wants Trump to remove tariffs that he imposed last year on US$200 billion of Chinese goods, but it’s not yet clear if the president will roll back some or all of the duties.
Even if some or most tariffs are removed at the outset they could come back as part of the enforcement mechanism, to punish China if it breaks the terms of any trade deal, Lighthizer said last week. China hawks have already picked up on that, which could make it even harder to sell the agreement to a sceptical audience that’s expecting a different result from this White House than what previous administrations got in years of failed economic dialogues.