The US and China are expected to announce a mini-deal this week that would prevent the tariffs announced by Trump. An official of the US Chamber of Commerce said that the temporary deal would prevent the tariffs which were set to go into effect this month. Both countries are trying to solve the trade war initiated almost one year ago.
The negotiation meeting has begun this week between these two nations. Both parties are looking for reaching a mini-deal that would resolve a part of the trade conflict. Myron Brilliant, the vice president of the Chamber of Commerce, said that this week’s meeting was expected to reach a limited agreement that would prevent the planned tariff increase on Oct. 15. Brilliant is also head of international affairs at the Chamber of Commerce.
Brilliant met with the negotiators from both countries and he said that a more comprehensive pact was expected that would depend on what China brought to the table. The limited arrangement would not constitute the full resolution of the trade conflict. Donald Trump demands some changes in the economic prospects of China. Trump said on Twitter that he would meet Liu He, a top trade envoy of China. His tweet raised the speculations of the limited deal.
Trump wrote on Twitter, “Big day of negotiations with China, they want to make a deal, do I?” The trade war has been dragging both economies. In the US, many businesses have been discouraged due to uncertainty in the economy. The businesses are reluctant to make new hires and investments. Brilliant said, “We cannot afford a further escalation of the trade war.”
Brilliant added that the escalation of the trade war would accelerate the chance of a recession. The US must have to understand the stakes here in order to strengthen the economy. The officials of the US administration denied any partial deal but the experts are known of their nature. A partial trade deal is on its way, according to the experts.