US may extend tariff exclusions on $34 billion of Chinese imports

In a major development in the ongoing US-China tariff war, the United States Trade Representative (USTR) is considering extending certain exclusions from additional tariffs for up to 12 months on $34 billion of Chinese imports. The current exclusions, granted last year, are set to expire on December 28, 2019. Earlier, the U.S. Trade Representative had initiated the exclusion process in July 2018 and granted an initial set of exclusions in December 2018.

The process commences in November

The U.S. Trade Representative, in a statement, said that it will commence a process on November 1 for such consideration. The USTR will provide details in a federal register notice to be published this week on the process of submitting inputs regarding specified tariff exclusions, whether in favour or opposing it. “The period for submitting comments will run from November 1, 2019, to November 30, 2019,” said the USTR.

Read: US, China 'close To Finalising' Trade Deal After Deadlock: Reports

Close on finalising a deal

On October 25, the USTR had said that both the countries are ‘close to finalising’ on some parts of a “mini deal” announced by US President Donald Trump. The agency said that high-level telephone discussions were held on October 25 but didn’t specify the areas where progress has been made. It added that the discussions will continue at the deputy level and the principals will have another call in future. The Chinese Ministry of Commerce, in a separate statement, also confirmed that "technical consultations" on some parts of a trade agreement were finished.

Read: Donald Trump Says 'phase 1' China Trade Pact On Track For November

Trump upbeat about the deal

Earlier this month, Trump had announced a “mini deal”, a limited trade agreement, and was confident on finalising the agreement. Trump later also hinted on the progress of the agreement saying they will be able to seal a deal on phase one. He said that “good things” were happening at the trade talk meeting. "We'll be able to, we think, sign a completed document with China on phase one," Trump said at the White House.

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(With Inputs from Agencies)