Optimism over a trade breakthrough with China is fading as China wants more talks this month to work out the details of the “phase one” agreement. Bloomberg News reports China may send another trade delegation to Washington, to finalize a written agreement. A statement from China’s Commerce Ministry noted “substantial progress” in the talks last week on agriculture and other provisions.
However, China wants President Donald Trump to cancel plans to increase tariffs in December. The phase one agreement could be signed at the Asia-Pacific Economic Cooperation summit next month. Treasury Secretary Steven Mnuchin earlier this week suggested work in the coming weeks to ready the agreement, adding, if not, the U.S. will impose the December tariff increase.
As part of the agreement, President Trump says China will purchase $40-50 billion of U.S. agricultural goods over the next couple of years. Trump said this week, “They’re going to have to buy more land fast and lots of tractors,” regarding the economic impact of the agreement for farmers.