The U.S. and China have tentatively agreed to another truce in their trade war in order to resume talks aimed at resolving the dispute, sources familiar with the situation said.
Such an agreement would avert the next round of tariffs on an additional $300 billion of Chinese imports, which would extend punitive tariffs to virtually all of the country’s shipments to the U.S., the South China Morning Post and Politico reported.
The U.S. administration has threatened to slap duties of up to 25% on the remaining untaxed Chinese goods if this weekend’s talks go poorly.
One source with knowledge of the planning told South China Morning Post that U.S. President Donald Trump's decision to delay additional tariffs was China's President Xi Jinping's price for holding the meeting in Osaka.
Trump reiterated yesterday that he was prepared to impose additional tariffs on China if the talks in Osaka fail, but suggested additional duties could start at 10%.
It is unclear whether Trump will put any sort of deadline for the talks to reach an agreement, as he had before. Two sources suggested a deadline of six months.
