Published: Wed, March 06, 2019
World Media | By Cesar Oliver

US, China Said Close to Trade Deal That May End US Tariffs

US, China Said Close to Trade Deal That May End US Tariffs

As part of the ongoing talks, the US asked the Chinese not to retaliate or bring World Trade Organization cases in response to USA tariffs that could be imposed to enforce the deal, according to a person familiar with the negotiations.

In the United States, manufacturing activity dropped in February to its lowest since November 2016, consumer confidence fell short of forecasts, inflation was tame and USA personal income fell in January for the first time in more than three years.

The index has gained more than 20 percent so far this year.

"'... I will be delaying the USA increase in tariffs now scheduled for March 1, '" Trump tweeted on February 24, according to The New York Times.

"We estimate the likely impact on USA consumers and find that by the end of 2018, import tariffs were costing USA consumers and the firms that import foreign goods an additional $3 billion per month in added tax costs and another $1.4 billion dollars per month in deadweight welfare (efficiency) losses".

The trade war was only one factor affecting the USA economy, Weinstein said, and with the US less exposed to trade than other major Western economies such as Germany, it was not having as much of an impact as it might.

USA and Chinese officials are nearing completion of a trade deal after Beijing offered to lower tariffs on American farm, auto and chemical products in exchange for Washington considering eliminating sanctions against China, according to a report on Sunday.

"I think that it looks like Ambassador Lighthizer has made a lot of progress, and we might get there on China", Hassett said in an interview with Fox Business Network.

President Donald Trump has asked China to immediately remove all tariffs on US agricultural products because trade talks are going well between the two nations.

Another source familiar with the talks said that Washington and Beijing were close to agreement on non-enforcement issues, including China's pledges to increase purchases of farm, energy and manufactured products, as well as six agreements on structural policy changes. "We hope that the two sides will continue to hold consultations and reach a mutually beneficial and win-win agreement", he added. The WSJ added that the expected Mar-a-Lago summit to seal the deal will happen "probably around March 27, after Mr. Xi finishes a trip to Italy and France".

However, The New York Times reported that Trump said he would delay the deadline for increasing tariffs on Chinese imports.

It added that oil, liquefied natural gas and other energy products would likely have the biggest potential to fuel United States export growth to China under such an agreement.

"More than four months later, it appears that the Administration has taken no meaningful action. and we write today with a renewed sense of urgency on this serious matter", said the letter, also signed by Representative Brad Sherman, Democratic chairman of the subcommittee on Asia and the Pacific and Representative Chris Smith, Republican ranking member of the subcommittee on human rights.

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