US-China Phase 1 Trade Deal: Latest Developments
Arslan Butt • 1 min read
According to a Bloomberg report, China is keen on holding more discussions with the US to gain more clarity on some issues before finalizing and signing the Phase 1 trade deal. A delegation consisting of officials under Chinese Vice Premier Liu He is expected to hold meetings with the US trade team before the two nations’ leaders sign the interim trade deal.
US President Donald Trump announced his decision to put off proposed tariff hikes which were to come into effect starting this week when he revealed his proposal for the Phase 1 trade deal. However, China wants assurances that the US will scrap the next round of tariff hikes which were to implemented in December as well, prior to agreeing to the new trade deal.
Meanwhile, US Treasury Secretary Steven Mnuchin confirmed that the US could go ahead with the December tariff hikes if both sides are unable to reach a trade deal till then. In an interview with CNBC, Mnuchin stated, “I have every expectation – if there’s not a deal, those tariffs would go in place – but I expect we’ll have a deal.”
Mnuchin also confirmed that trade negotiations between the two countries are expected to continue over the next few weeks as more work is needed before penning the deal announced by Trump last week.