Could the US-China “phase one” trade agreement increase in scope as talks progress? According to sources, if the US concedes to China’s insistence of removal of tariffs in a phased approach then the trade deal being signed could get bigger and more comprehensive.

Sources shared with Reuters that the US would consider cancelling the next round of tariff hikes scheduled for December 15 and even roll back existing tariffs if China responds with deeper concessions on its end. Trump will probably have to see this having a positive impact on his reelection campaign before he considers expanding the scope of this upcoming partial trade agreement.

However, China appears reluctant to commit to importing a fixed amount of US farm goods, instead of letting supply and demand dictate the quantity of purchases. The Chinese government also wants Trump to call off the recent tariff hikes imposed starting from September 1 before it agrees to more progress in trade negotiations.

For now, Trump and US Trade Representative Robert Lighthizer seem hesitant to give in to China’s demands for tariff rollbacks over a partial trade deal which does not touch upon the key issues of IP protection and forced technology transfers. Trump maintains on the trade deal currently that China will “have to make a deal that I like. If they don’t, that’s it.”