This morning Gao Feng, a spokesperson for China’s Commerce Ministry, said that both sides had agreed to simultaneously cancel some existing tariffs on one another’s goods.
This morning’s announcement has created a lot of buzz and the US markets are responding favorably.
There’s been progress in the China and US trade talks over the past couple of weeks. As a contingency for the trade deal, the two sides stipulated that the some tariffs currently in place will be canceled at time of signing phase 1 of the trade deal.
The list of tariffs to be cancelled has not be determined. The proportion of tariffs canceled must be the same, and how much tariffs which should be canceled will be negotiated in phase one of the agreement.
Reuters reported on Wednesday that a meeting between President Donald Trump and Chinese President Xi Jinping could be postponed until December — delaying a chance for the two leaders to sign an interim trade deal.
Mallory Alexander will continue to monitor the latest news pertaining to China – US trade talks and Section 301 tariffs.