Deal could be reached by end of June
US Treasury Secretary Steve Mnuchin is headed to China today for what he calls the “final lap” of trade negotiations, that could bring an end to the growing trade war between the world’s two largest economies.
Mnuchin is heading a US delegation that includes lead trade negotiator Robert Lighthizer to try and iron out the remaining wrinkles between two countries, according to the New York Times. The hope is that when Chinese officials travel to Washington, DC on 8 May it will be to conclude the talks.
For nearly a year, China and the US have been exchanging tariffs on billions of dollars’ worth of products from raw materials to finished goods, causing some destabilisation in world markets.
President Trump has said repeatedly that talks with China are going well, he has continued to insist that the United States could walk away if it does not get the trade terms it wants. Last year, Trump imposed crippling tariffs on US$250 billion worth of Chinese products in an effort to get Beijing to make significant changes to its economic practices, including China’s requirement that American companies turn over valuable intellectual property as a condition of doing business there.
According to the Times, Mnuchin declined to predict whether the negotiations would be wrapped up by the end of June but said he believes that both countries want to reach a deal. He also would not say if a breakdown in the talks would lead Mr. Trump to impose more tariffs.