Tariff Hike Deadline Looms As US-China Talks Continue This Week

Negotiations between the U.S. and China resume this week in Washington after both sides reported progress during last week’s talks in Beijing, but a March 1 deadline looms over the talks. Following talks last week, Chinese officials and the White House both confirmed the plans for more mid- and high- level talks this week in Washington. The White House said it "hopes to see additional progress" as negotiations continue. U.S. Trade Representative (USTR) Robert Lighthizer and Treasury Secretary Steven Mnuchin led the U.S. delegation during the Beijing talks. Vice Premier Liu He headed up the Chinese side and President Xi Jinping also dropped in at the conclusion of negotiations. “Extensive technical exchanges between the professional staffs of both countries" lead to "detailed and intensive discussions,” White House Press Secretary Sarah Huckabee Sanders said in a statement following the talks. While "progress" was made, "much work remains" to resolve outstanding issues before a March 1 deadline when the U.S. is set to increase tariffs to 25% on $200 billion in Chinese goods, she noted. "Structural issues, including forced technology transfer, intellectual property rights, cyber theft, agriculture, services, non-tariff barriers and currency" continue to be the focus for U.S. negotiators, Huckabee said. Reports suggest a significant gap remains on those issues, which the U.S. has insisted be part of any final agreement. Meanwhile, Huckabee noted commitments by China to purchase more U.S. goods and services are also a factor in negotiations and any such commitments will be included in a Memoranda of Understanding (MOU) between the two countries.