Market Overview

China To US: Drop Tariffs Or No Trade Deal

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China To US: Drop Tariffs Or No Trade Deal

Improved sentiment between U.S. and China after the G-20 summit may be short-lived after China reiterated its "clear and consistent" policy on trade.

What Happened

China's Minister of Commerce spokesman Gao Feng told reporters Thursday the U.S. needs to remove all imposed tariffs before the two countries can finalize a trade deal, CNBC reported.

President Donald Trump has said the 25% tariff on $250 billion in Chinese goods won't be reduced.

Trump also made clear his administration has a "plan B" on the table which consists of new tariffs.

Why It's Important

China already agreed to buy more U.S. products, especially in the agriculture segment, and the U.S. agreed to relax a ban on American companies selling component parts to Huawei.

China's promises are subject to domestic demand conditions and the opinion of local companies, the South China Morning Post reported.

What's Next

If the U.S. administration "flip-flops" on the trade talks, then any promises China's government made to purchase more agriculture products will "be overturned," the SCMP said.  

Trade talks between the U.S. and China are expected to proceed with future face-to-face meetings, as the two sides are already engaged in "lots of communications," the newspaper quoted White House economic adviser Larry Kudlow as saying. 

Related Links:

G-20 Recap: Trade Truce A Boost For The Market, Especially Chip Stocks

Trump Says Trade Talks With China Have Restarted; Chinese Premier Pledges Equal Treatment For Companies

Posted-In: China CNBC G-20 HuaweiNews Politics Media General Best of Benzinga

 

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