The United States and China have been engaged in a trade war since Trump announced last June that $50 billion worth of Chinese goods would be subject to 25 percent tariffs in a bid to fix the US-Chinese trade deficit. If a deal is not struck before then, USA tariffs on Chinese goods will increase, barring some sort of extension.
Speaking at the White House during a meeting last Thursday with Chinese Vice Premier Liu He, Trump said he was optimistic that the economic powerhouses could reach "the biggest deal ever made".
US Treasury Secretary Stephen Mnuchin and trade representative Robert Lighthizer will lead a delegation to Beijing next week for the next round of trade talks. Despite Trump's tormenting comments, which excruciated the financial market atmosphere and added new worries to the existing global slowdown and geopolitical tensions, White House Economic Adviser Larry Kudlow told the reporters on Thursday (February 7th), that, the leaders of the two economic superpowers might have still met at a later date.
"A real deal still has to take shape", said Scott Kennedy, a China expert at the Center for Strategic and International Studies."Everything between now and when the USA delegation goes to Beijing is 100 percent noise". Three sources familiar with the matter indicated that report was wrong.
Maine Pointe CEO Steve Bowen told Supply Chain Dive he doesn't expect Trump to back down "one iota" from his plan to raise tariffs and negotiate trade issues with China. Asian stocks tumbled yesterday on worries the United States and China will not reach an agreement.
Trump was asked by reporters whether there would be a meeting in the next month or so, Trump replied: 'Not yet. The U.S. and China sought to resolve deep-seated trade issues in just three months, and analysts largely agreed the short time frame did not provide sufficient time for matters such as intellectual property and technology transfer.
The March crude contract was up seven cents at US$52.71 per barrel and the March natural gas contract was up 2.6 cents at US$2.58 per mmBTU. However, the purchases don't offset the damage done to the soybean industry since tariffs were imposed.
Lighthizer said last week that tariffs had not been a subject of the talks.
"They're hoping for more success", he said.