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Trump and Xi Likely to Get Only Framework Trade Deal, Ross Says

16 November 2018

Speaking to reporters Wednesday, Malmstrom said she had told Lighthizer that a tit-for-tat trade war would be damaging to both Europe and the United States.

The items on Beijing's non-negotiable list were unacceptable to the United States, the official said.

It now appears that the 2 world powers are close to a favorable deal on trade, and will move to relieve the tensions that have roiled the market for the last few months. He added that companies in both the United States and China have been affected and are responding to the trade dispute, which has triggered tit-for-tat in tariffs on goods.

Ross said that the United States is still planning on January 1 to increase tariffs to 25 per cent on some $200 billion (Dh734bn) in goods from China that became subject to a 10 per cent import tax in September.

China has proved that it is aware of its own commercial self-interest and the effect its own retaliatory measures are having on it, Ross said, pointing to Beijing's decision to reduce a 25 percent retaliatory tariff on US LNG to 10 percent.

Trump has imposed tariffs on $250 billion (£194.8 billion) of Chinese imports to force concessions from Beijing on the list of demands that would change the terms of trade between the two countries.

The FT report also said "signs have emerged" that Lighthizer was "now more involved and participating in the negotiations", though it did not provide evidence or sources for this assertion. He added that the USA economy is more durable in comparison to China to weather any such escalation in future. But whether or not Washington and Beijing will be able to strike a deal and avoid a looming sharp hike in tariffs on $200 billion in Chinese goods remains uncertain.

China must offer concessions on intellectual property theft, forced technology transfer, restricted access to Chinese markets and respect for worldwide rules and norms, among other issues, he said.

Censky, who previously headed the American Soybean Association, said that Trump would be looking for a "robust level of commitments from China for purchases, because we want to make sure that we resume our sales".

Gao said: "High-level contacts between the two sides on economics and trade have resumed following the November 1 conversation between the Chinese and American heads of state".

The Chinese Foreign Ministry didn't immediately respond to a fax seeking comment that was sent before regular working hours on Thursday.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.

Trump and Xi Likely to Get Only Framework Trade Deal, Ross Says