The U.S. and China have agreed to a possible trade-war truce.
Talks between the two countries about a potential agreement, of which details and preconditions are already being laid out, are expected to resume at the G-20 summit this coming weekend, Politico reported Thursday.
A trade agreement between President Donald Trump and Chinese President Xi Jinping would stop the implementation of additional U.S. tariffs on $300 billion worth of Chinese imports and duties of up to 25% on remaining untaxed Chinese goods. (RELATED: Trump Floating More China Tariffs If Xi Doesn’t Sit Down At G20)
Xi is expected to present to Trump with the precondition that the U.S. remove its ban on Chinese telecommunications giant Huawei Technologies before the summit, according to a Thursday report from The Wall Street Journal.
Trump signed an executive order to ban Huawei sales in May citing national security reasons after the U.S. Department of Justice charged the company for bank fraud, wire fraud and violating Iran sanctions, which Huawei CEO Ren Zhengfei said would cost the company $30 billion in revenue.
“The reality, though, is President Trump could always have a change of heart,” one source told Politco. “But the truce cake seems to have been baked.”
An administration official told ABC News Thursday that Trump is “quite comfortable with any outcome … So it’s really just, you know, an opportunity for the president to maintain his engagement, as he has, very closely with his Chinese counterpart. Even as trade frictions persist, he’s got the opportunity to see where the Chinese side is since the talks last left off.”
Trump told CNBC on June 10 that “China is going to make a deal because they are going to have to make a deal,” adding that he and the Chinese president have a “great relationship.” (RELATED: The Massive ‘Pig Ebola’ Epidemic Will Give Trump Big Leverage In His Trade Standoff With China)
The trade war started after a potential deal discussed between Trump and Xi faded after the two met at last year’s G-20 summit in Buenos Aires when. The U.S. raised tariffs from 10% to 25% on goods from China in May, increasing tariffs to around $200 billion on Chinese goods. In retaliation, Beijing raised its tariffs on $60 billion worth of U.S. goods three days later.
The president will also meet with Russian President Vladimir Putin, Japanese Prime Minister Shinzo Abe, French President Emmanuel Macron, German Chancellor Angela Merkel, British Prime Minister Theresa May, Saudi Crown Prince Mohammed bin Salman, Turkish President Recep Tayyip Erdogan, Canadian Prime Minister Justin Trudeau, Mexican President Andrés Manuel López Obrador and others.
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