CHINA PRESSES U.S. FOR TARIFF ROLLBACK

Beijing also wants duties on US$156b worth of imports scheduled for Dec 15 scrapped

CHINA is pushing United States President Donald Trump to remove more tariffs imposed in September as part of a “phase one” US-China trade deal, said people familiar with the negotiations on Monday.

The deal, which may be signed later this month by Trump and Chinese President Xi Jinping at a yet-to-be determined location, is widely expected to include a US pledge to scrap tariffs scheduled for Dec 15 on about US$156 billion (RM647.4 billion) worth of Chinese imports, including cell phones, laptop computers and toys.

A US official said the fate of the Dec 15 tariffs was being considered as part of negotiations and a potential signing trip this month.

Another source briefed on the talks said Chinese negotiators wanted Washington to drop 15 per cent tariffs on about US$125 billion worth of Chinese goods that went into effect on Sept 1.

They are also seeking relief from earlier 25 per cent tariffs on about US$250 billion of imports from machinery and semiconductors to furniture.

A person familiar with Beijing’s negotiating position said China was continuing to press Washington to “remove all tariffs as soon as possible”.

China’s request to remove the Sept 1 duties was earlier reported by Politico, citing sources.

The Financial Times also reported the White House was considering whether to roll back the Sept 1 tariffs, which cover some clothing items, flat-screen televisions, smart speakers and Bluetooth headphones.

Ralph Winnie, director of the China programme at the Eurasia Centre, said wrapping up the interim trade pact would provide a boost to both the US and Chinese economies, while handing Trump an important win among farmers — a core constituency.

“It’s in both countries’ interest to have this trade deal,” said Winnie. “If he seals the deal, it will be looked on favourably by the American people. It’s a win-win for both countries.”

China was requesting some changes to the text, but parts of the agreement were “very close to finished”, including the text on financial services, said a US source.