With the deadline looming right ahead for the next round of tariff hikes on Chinese imports, officials have confirmed that US President Donald Trump is set to meet with senior trade officials to discuss the issue of the December 15 tariffs. Markets, meanwhile, remain tensed about how the implementation of these tariffs could sour the sentiment and re-escalate the trade war all over again.

With no positive developments emerging on either side’s readiness to sign the phase one trade deal, tariff hikes have been back on the table, threatening to disrupt the past few weeks of optimism surrounding the trade talks. On Thursday, Trump is expected to meet with US Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin as well as White House advisers Larry Kudlow and Pete Navarro.

It is highly likely that a decision could emerge on whether the US wants to push ahead with the tariff hikes on another $156 billion worth of Chinese goods, mostly focused on consumer goods this time around. So far, China and the US have been unable to agree on tariff rollbacks and increasing farm goods purchases towards finalizing the phase one deal.

In case Trump gives the green light for the next round of tariffs, the trade negotiations could very well break down and any possible resolution could delay until after the 2020 Presidential elections. There is also a slightly optimistic alternative where these round of tariffs could be delayed slightly for talks to continue progressing.