Even as the US and China continue negotiations towards working out the “Phase 1” trade deal, discussions are also focused on finding the right location for meeting and signing the deal and on possible removal of more tariffs imposed by the US on Chinese imports. According to recent news reports, the US and China are exploring potential venues where Trump could meet Xi Jinping and sign the partial trade deal.

Meanwhile, China is also keen on having the US call off additional tariffs on up to $360 billion worth of imports before agreeing to sign the deal. According to sources, officials on China’s trade team have requested exemption of tariffs on around $110 billion of Chinese goods announced in September as well as a reduction in the 25% tariffs imposed on around $250 billion worth of goods last year.

The US is likely considering dropping tariffs on around $110 billion worth of Chinese goods, including apparel, consumer appliances, flatscreen monitors, and more which were announced in September. The US is also likely to further entice China into signing the trade deal with an assurance to cancel tariffs on another $150 billion worth of imports due to come into effect in December.

While rolling back existing tariffs could serve to soothe the market sentiment considerably, it may not be a wise political move as far as Trump has concerned. So far, Trump has proudly pointed out the shrinking trade deficit and the impact the tariffs have had on China’s economy as his victory in cutting China down to size. Any step backwards could impede his reelection campaign for 2020.