U.S.-China trade talks to resume next week, Trump hints at extension

BEIJING/WASHINGTON, (Reuters) - The United States and China will resume trade talks next week in Washington with time running short to ease their bruising trade war, but U.S. President Donald Trump repeated yesterday that he may extend a March 1 deadline for a deal and keep tariffs on Chinese goods from rising.

Both the United States and China reported progress in five days of negotiations in Beijing this week.

Trump, speaking at a White House news conference, said the United States was closer than ever before to “having a real trade deal” with China and said he would be “honored” to remove tariffs if an agreement can be reached.

But he added that the talks were “very complicated.”

White House Press Secretary Sarah Sanders said in a statement on Friday the two economic superpowers “will continue working on all outstanding issues in advance of the March 1, 2019, deadline.

“These detailed and intensive discussions led to progress between the two parties. Much work remains, however,” Sanders said about the Beijing talks.

She added that the two countries agreed to state any commitments they make in a memorandum of understanding. China’s Vice Premier and chief trade negotiator Liu He and U.S. Trade Representative Robert Lighthizer would be leading the talks in Washington, a White House source said.

U.S. duties on $200 billion in imports from China are set to rise to 25 percent from 10 percent if no deal is reached by March 1 to address U.S. demands that China curb forced technology transfers and better enforce intellectual property rights.

Trump, asked whether he would grant Beijing a 60-day extension to the deadline, said: “There is a possibility that I will extend the date. But if I do that - if I see that we’re close to a deal or the deal is going in the right direction - I would do that at the same tariffs that we’re charging now, I would not increase the tariffs.”

Trump also said he would consider bringing top U.S. Democrats - House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer into the final stages of the talks to minimize their dissent with the deal. Spokespersons for the two lawmakers did not immediately respond to requests for comment.

The conclusion of the Beijing talks prompted optimism on Wall Street, where major stock indexes ended higher.

The U.S.-China Business Council,