Trump has made it clear that unless he is satisfied with the terms of the trade deal, he will walk away from it.
As per a report from the Wall Street Journal, high level negotiations between U.S. President Donald Trump and Chinese President Xi Jinping could reach a significant milestone, if not a formal trade deal, at a summit around March 27.
U.S. punitive tariffs on China have weighed down its surging economy to the extent that China’s car sales touched their 30-year low. Both nations have imposed tariffs worth hundreds of billions of dollars, on each other, disrupting manufacturing supply chains and roiling global financial markets.
As per WSJ’s report which cites sources familiar with the matter at hand, “China would lower tariffs on U.S.-made goods including agricultural products, chemicals and cars in exchange for sanctions relief from Washington”.
Sources have cautioned that negotiations continue to face strong headwinds and existing hurdles have yet to be crossed. Both sides faces resistance from the domestic crowd saying the terms are too favorable to the other side.
WSJ report states, the deal will entail China purchasing natural-gas worth $18 billion from Houston-based Cheniere Energy Inc.
Cheniere declined to comment on the potentially new LNG supply deal with China. In 2018, it had signed a 20-year supply contract of LNG to Chinese National Petroleum Corp (CNPC) from its Louisiana export terminal.
Last week, U.S. Treasury Secretary Steven Mnuchin had told CNBC that the United States is working to hammer out a detailed trade agreement with China which will include specific structural commitments.
Mirroring the stance, last week, Trump had said he would walk away from a trade deal with China if it was not good enough.