China says existing US tariffs must be removed for a trade deal

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China says existing US tariffs must be removed for a trade deal

On Thursday, the 4th of July 2019, casting further shadows over the outlook of an escalated Sino-US trade spat, where both of the economies had inclined higher tariffs on each other’s products and contributing actively to a sharp slowdown risk, China’s commerce ministry said that the existing US tariffs had to be withdrawn to reach a decipherable trade deal with Washington.

Nonetheless, leaders of the world’s first- and second-largest economy had reached a trade truce last week at a G20 summit in the Japanese city of Osaka and agreed to restart trade talk following a pre-mature ending of May’s trade talk, when Trump had imposed a 25 percent on $200 billion worth of Chinese imports, blacklisted China’s tech tycoon Huawei Technologies, and threatened to impose higher tariffs on all existing Chinese imports worth of $300 billion.

However, after an eighty-minute long tentative talk between Trump and Xi over the sidelines of latest G20 summit, both of the nations had agreed not to impose further tit-for-tat tariffs on each other’s product and to restart trade negotiations.

Meanwhile, adding that the lifespan of trade truce would depend on Trump’s approach towards tariffs on Chinese goods, Chinese Commerce Ministry Spokesman, Gao Feng had been quoted saying in a press briefing on Thursday (July 4th) that leading negotiators from both sides had been in contact.