Despite the enthusiasm of the Trump administration to sign a phase one trade deal with China, reports said the deal could be delayed until December as consensus eludes on the pact's terms and a possible venue for signing the deal.
China and the United States have agreed a plan to remove tariffs imposed on two-way goods in stages, the commerce ministry said Thursday, as negotiators try to hammer out a trade deal.
Although China wok brims with demands seeking scrapping of all tariffs, the report said, it is unlikely to derail the interim deal.
"For nearly two years now, the U.S./China trade tussle has posed the biggest headwind to global growth", BMO Economics said in a research note.
U.S. trade representative, Robert Lighthizer, is one of several officials who have argued that the duties on the $250bn of goods are a way of making sure China lives up to its commitments and should be in place for the long term.
President Donald Trump agreed to postpone a deliberate tariff hike whereas lower-level officers hammered out particulars.
The spokesman said that Chinese and American negotiating teams have reached a consensus following "extensive, constructive and serious" talks in recent weeks.
The U.S. and China both confirmed Thursday that tariffs will be rolled back as part of the first phase of a trade deal.
-China trade disputes, a US anti-tariff advocacy group said Wednesday.
Removing tariffs "will help stabilize market expectations, benefit the economies of the two countries and the world economy, benefit producers, and benefit consumers", the spokesman said.
Despite the upbeat comments Thursday, it is unclear when or if such a deal will be signed.
Most of the recent market optimism, however, has been fuelled by the increasing chance of a mini trade deal between the U.S. and China.
Trump said China agreed to buy up to $50 billion of American farm goods.
News reports said Beijing wants 15% tariffs imposed in September on $125 billion of Chinese imports removed before it will make a formal commitment.
In terms of industry sectors, the report stated that a high percentage of increased exports to the USA came in the form of office machinery and communication equipment.
But there is a divide within the administration over whether rolling back tariffs will give away USA leverage in the negotiations, current and former administration officials said.