A source briefed on the negotiations told Reuters the two countries appear close to a deal that would roll back US tariffs on at least $200 billion worth of Chinese goods.
A bipartisan group of USA lawmakers complained to the Trump administration on Monday that its response to rights abuses against China's Muslim minority was inadequate months after it said it was looking into imposing sanctions. It is uncertain if Trump will remove all tariffs or have some remain in effect, stated The New York Times.
USA lawmakers have appealed to the Trump Administration to take action against "egregious human rights abuses" in western China, where it is believed that at least one million ethnic Uighur and other minority Muslims are being held in secretive internment camps.
In an eight-month trade war, the United States has imposed punitive tariffs on $250 billion worth of imports from China, while Beijing has hit back with tariffs on $110 billion worth of US goods, including soybeans and other commodities. The tariffs are part of the tit-for-tat trade war a year ago when China retaliated over US tariffs by targeting agriculture.
As part of the trade agreement, China would lower tariffs on agricultural and other USA products, according to The Wall Street Journal, something expected by producers, including soybean producers, who maintain large accumulations in their warehouses because of the differences between the two nations that made trade impossible.
But the trade war is also hitting business operations at home in the USA, as well as the American consumer.
"We're seeing conflicting reports from the United States trade team, and Trump's willingness to walk away from the North Korea summit without a deal could hint at his willingness to do something similar with China", he said. The mooted trade deal would require Beijing to follow through on pledges ranging from better protecting intellectual-property rights to buying a significant amount of American products, two people familiar with the discussions said. The U.S. wants to continue to wield the threat of tariffs as leverage to ensure China won't renege on the deal, and only lift the duties fully when Beijing implemented all parts of the agreement.
China wants Trump to remove tariffs that he imposed a year ago on $200 billion of Chinese goods, but it's not yet clear if the president will roll back some or all of the duties.
Beijing has offered to lower tariffs and other restrictions on American farm, chemical, auto and other products and Washington considering removing most, if not all, sanctions levied against Chinese products since past year, according to the Wall Street Journal. "'Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement'". "He can afford to alienate business with a little tough love on China", Cramer said.
Cramer said some fund managers have begun to short stocks with China exposure and bet long on names unaffected by the ongoing trade talks between the world's largest economies.
Companies in America purchasing imported products pay the tariffs, and most if not all of those costs are typically passed onto U.S.