No agreement to reduce tariffs in US-China trade deal: Officials

Representational image (Photo: IANS)


The trade war between China or US set to be signed on Wednesday that does not include a rollback tariff imposed on most Chinese goods, according to the statements by US officials.

The joint statement from the Treasury and the US Trade Representative’s office said, “there is no agreement for a future reduction in tariffs. Any rumours to the contrary are categorically false”.

After nearly two years of conflict and the exchange of punishing tariffs that have had a negative impact on business investment and global economic growth, President Donald Trump last month announced a “phase one” trade deal with Beijing.

On January 1, US President Donald Trump confirmed that he will sign an initial phase one trade agreement with China on January 15.

The pact, a “phase one” deal, is expected to reduce tensions between the two economic giants.

On December 21, President Trump said that the United States and China would “very shortly” sign their so-called Phase One trade pact.

The Phase One deal was announced as part of a bid to end the months-long tit-for-tat trade war between the world’s two largest economies, which has roiled markets and hit global growth.

Chinese President Xi Jinping said that phase one economic and trade deal between China and the US does not only benefits the two economic.

The “phase one” is a partial resolution that is expected to see China boost imports of US agricultural and other goods, while Washington has eased massive tariffs on Chinese imports.

According to the two countries, the phase one agreement addresses issues including technology transfer, intellectual property, trade expansion and the establishment of mechanisms for dispute resolution.

China had called for a rollback of existing tariffs, to which Trump has said he did not agree. American officials want large purchases of US farm exports.

In September, the US had imposed fresh tariffs on $112 billion worth of Chinese imported goods, marking a sharp escalation of the bruising trade war between the world’s two largest economies.