A trade truce is underway between the U.S. and China, but it is only temporary as the U.S. administration announces a March deadline that will determine the implementation of tariffs. According to U.S. Trade Representative Robert Lighthizer, the two countries must reach a deal by Mar. 1; otherwise, the 10% tariffs on $200 billion of Chinese goods will rise to 25%.
Prior to U.S. President Donald Trump's meeting with China President Xi Jinping during the G-20 summit in Argentina, the 10% tariffs were expected to rise at the start of 2019, while the current 25% tariffs remained in place. The White House then issued a statement citing no escalation at this time, following the two presidents' meeting. On Dec. 9, Reuters reported Lighthizer's comment on the CBS show Face the Nation, where he said Mar. 1 is "a hard deadline."
"When I talk to the president of the United States, he is not talking about going beyond March," Lighthizer said on the show." The way this is set up is that at the end of 90 days, these tariffs will be raised."
Negotiations include increased purchases of U.S. agricultural and manufacturing goods from the Chinese market as well as structural changes to forced technology transfers.
—Andrew Michaels, editorial associate