The United States and China are all set to sign a trade deal on January 15 but the agreement does not include a rollback of tariffs imposed on Chinese goods by the US, as per reports. According to the US Trade Representative's office, Washington will be maintaining 25 per cent tariffs on approximately $250 billion of Chinese imports. USTR said that the United States is keeping the tariffs unchanged to provide negotiating leverage for the second phase of negotiations scheduled for next year.
Chinese local media had reported last month that Beijing is insisting US tariffs must be rolled back as part of phase one deal with Washington. But after the joint statement from the Treasury and the US Trade Representative's office, it is clear that Trump administration is not yet ready to roll back tariffs imposed on Chinese goods. The new trade deal will, however, see the US cancel a new tranche of painful import duties on consumer goods that had been scheduled to hit on December 15 last year. Officials have said the details of the trade pact will be made public on January 15.
China and the United States are involved in a brutal trade war since 2017. Both countries have been putting tariffs on each other's products, thus affecting global trade stability. The United States and China on December 13 reached a phase-one trade agreement that reduced some US tariffs on Chinese goods and vice-a-versa. The phase-one trade deal will also boost Chinese purchases of American farm products and other goods.
US President Donald Trump after reaching the trade truce acknowledged, "We have agreed to a very large Phase One Deal with China. They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more." President Trump further added that negotiations on the Phase Two deal will begin immediately, rather than waiting until after the 2020 election.