Published: Fri, November 08, 2019
Money | By Ethel Goodwin

Trump, Xi may push trade deal signing to December, outside US

Trump, Xi may push trade deal signing to December, outside US

China and the United States have agreed over the past two weeks that criminal and retaliatory duties imposed on mutual exports in the context of a trade war will be phased out, spokesman for trade department Gao Feng said on Thursday.

While still maintaining that the additional tariffs should eventually be terminated, Thursday's announcement signaled its readiness to agree to a partial cancellation of tariffs in phase one of the trade deal.

Both sides in the China-U.S. standoff have incentives to ease tensions.

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More complicated issues would be tackled in later rounds of negotiations, he said.

"China's position has been consistent and clear: the trade war was started by raising tariffs, and so it should be ended by canceling them", Gao told reporters in Beijing.

But the venue of the summit between U.S. President Donald Trump and Chinese President Xi Jinping to sign the agreement still remained unannounced, after the mid-November Asia-Pacific Economic Cooperation conference in Chile was scrapped in the face of violent protests.

The S&P 500 futures rose 12.88 points, or around 0.42% to 3,088, while the tech-heavy Nasdaq 100 futures advanced 42.25 points, or roughly 0.51% to 8,249.50.

ING's Greater China economist Iris Pang said speculation that the U.S. might roll back a 15 per cent tariff that was imposed on US$112 billion worth of Chinese goods in September is premature. "Investors are still cautious". "The currency could rally to 6.9 if the US confirms the news on the lift of tariffs".

He didn't give any information on when and where a deal could be signed.

A proposal that the United States roll back a portion of tariffs on Chinese products has reportedly led to a sharp divide among White House officials.

The statements come amid rising hopes that the two countries will sign a pact that declares an end to a trade fight that has disrupted the global economy.

USA consumers and businesses paid an additional 38 billion US dollars in tariffs from February 2018 to September 2019 due to U.S.

China's imports of American soybeans and other goods tumbled 26.4% in the first nine months of this year following tariff hikes and orders to importers to find other suppliers.

Troyjo dismissed the idea of Brazil taking sides between China and the U.S. The dollar slid and the three-day global stock market rally paused as US productivity data disappointed and investors turned a bit cautious about U.S.

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