A Chinese ministry of commerce spokesman said that China and the US have agreed to proportionally roll back tariffs on each other’s goods in phases, reported Bloomberg.
Gao Feng, the Chinese Ministry of Commerce spokesman said that the amount of tariff relief that would come in the first phase, set to be signed in the coming weeks, would depend on the content of that agreement, without giving further details.
According to Feng the two world’s biggest economies had constructive talks in the past two weeks.
If confirmed by the US, such an understanding could provide a road-map to de-escalate a trade war that is cast a shadow over the world economy. China’s key demand since the start of negotiations has been the removal of punitive tariffs imposed by President Donald Trump, which by now apply to the majority of its exports to the US.
China also previously demanded that Trump cancel plans to impose duties on roughly $160 billion in imports, scheduled for 15 December 2019, which would hit consumer favourites like smart-phones and laptops. At the very least, those tariffs have to be taken off the table for Xi to get on a plane to meet Trump.
The two sides continue to negotiate over where and when a ‘Phase One’ deal would be signed.