Expectations of a US-China deal decreases

Expectations for a US-China trade deal dwindled after Chinese authorities unexpectedly canceled a visit to Montana and Nebraska farms. The cancellation came after two days of negotiations in Washington.

According to Reuters, Chinese authorities would visit US farmers as a gesture of goodwill, but have canceled to return to China earlier than originally expected.

The cancellation comes after the US has withdrawn tariffs on more than 400 Chinese products. That’s because the US Trade Representative’s office issued three notices from the Federal Register exempting a wide range of tariff products in response to requests from US companies arguing that taxes would cause economic hardship.

The 437 exempt products range from circuit boards for computer graphics processors to dog collars, wood laminate flooring, and Christmas lights.

Earlier, US President Donald Trump said he wanted a full trade deal with the Asian country, not just an understanding for China to buy more US agricultural products.

“China started buying our agricultural products, if you noticed, last week. And indeed, they have been very large purchases. But that’s not what I’m looking for. I’m looking for a big deal.”

Chinese and US negotiators met last week to lay the groundwork for high-level negotiations in early October, which will determine whether the two countries are working toward a solution or moving towards new and higher tariffs on each other’s goods.

A delegation of about 30 Chinese officials, led by Deputy Finance Minister Liao Min, met with colleagues at the US Trade Representative’s office near the White House. US Deputy Trade Representative Jeffrey Gerrish led the US delegation.

Sources: Reuters and Money Times

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