Over 150 business groups sent a letter to President Donald Trump yesterday urging him to publish a federal notice that makes clear tariffs do not automatically increase on Saturday, after his decision to delay a steep tariff hike on Chinese goods.
Trump announced the delay on Sunday, without giving specifics, after his top trade negotiator, Robert Lighthizer, and Chinese Vice Premier Liu He wrapped up seven days of talks.
The announcement was the clearest sign yet that China and the United States are closing in on a deal to end a months-long trade war between the world's two largest economies that has slowed global growth and disrupted markets.
Tariffs on $200 billion worth of Chinese imports had been set to rise to a prohibitive 25% from the current 10% if no deal were reached by Friday.
"Although we are encouraged by the latest signs of progress, it is important to note that existing tariffs and shifting deadlines are hanging over American businesses and farmers and undermining their ability to grow, invest, and plan for the future," the letter said.
The business groups include the American Petroleum Institute, the National Retail Federation, the Retail Industry Leaders Association, the Internet Association and the Motor & Equipment Manufacturers Association among others. They are part of the Americans For Free Trade coalition.
US businesses paid an additional $2.7 billion in tariffs in November 2018, according to data from a coalition of US business groups fighting trade tariffs.
Same tariff rate
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, which represents American companies doing business in China, applauded the announcement that the two sides would put specific language in a memorandum of understanding and said its existence could cause the Trump to push back deadline.
“It does appear that enough progress has been made to possibly extend the deadline,” said Craig Allen, president of the Washington-based group. “The memorandum of understanding might not finish all the details, but if it contained the final picture ... that would be a huge step forward.”
Chinese state news agency Xinhua said on Friday that China and the United States had reached a “consensus in principle” on some key issues, adding they had a detailed discussion on a memorandum of understanding on trade and economic issues. It gave no details.
The countries focused this week on technology, intellectual property rights, agriculture, services, non-tariff barriers and currency, and discussed potential Chinese purchases of U.S. goods and services to reduce a “large and persistent bilateral trade deficit,” Sanders said.
Meeting with Xi
Chinese President Xi Jinping met Lighthizer and U.S. Treasury Secretary Steven Mnuchin, after a week of talks at senior and deputy levels, and called for a deal both sides could accept, Chinese state media said.
After talks on Thursday, Mnuchin said on Twitter that he and Lighthizer had held “productive meetings” with Xi’s top economic adviser, Liu He.
“The consultations between the two sides’ teams achieved important step-by-step progress,” Xi said, according to state television.
“I hope you will continue efforts to advance reaching a mutually beneficial, win-win agreement,” Xi said at Beijing’s Great Hall of the People.
He added that China was willing to take a “cooperative approach” to settling bilateral trade frictions.
Lighthizer told Xi the senior officials had “two very good days” of talks.
“We feel that we have made headway on very, very important, and very difficult issues. We have additional work to do but we are hopeful,” Lighthizer told Xi in a pool video shown to foreign media.