Following two weeks of what Gao Feng, a spokesperson for China’s Commerce Ministry, described as constructive negotiations, Feng said China and the U.S. have agreed to cancel some tariffs on each other’s goods. The caveat for a limited trade agreement is that the two countries must remove the same amount of tariffs at the same time, according to a CNBC report.
An interim U.S.-China trade deal is expected to include a U.S. promise to scrap tariffs scheduled for Dec. 15 on approximately $156 billion worth of Chinese imports, including cell phones, laptop computers and toys, Reuters reports.
The two countries continue to negotiate over where and when a Phase One deal would be signed. Gao said he had no further information on the location or timing, according to Bloomberg.
“The question right now is what the two sides have actually agreed on. Investors are still cautious,” Tommy Xie, economist, Oversea-Chinese Banking Corp., said in a Bloomberg report.
China’s announcement today follows a meeting held in the White House late last month between the Motor & Equipment Manufacturers Association (MEMA), leadership from several member companies and Vice President Mike Pence to discuss the negative impact Section 232 tariffs will have on autos and motor vehicle parts if imposed, as well as support for the ratification of the United States-Mexico-Canada Agreement (USMCA). The Heavy Duty Manufacturers Association is a division of MEMA.
Since early 2018, the trucking industry has been trying to navigate uncertain trade waters because of imposed tariffs and the threat of more.
