According to a report from Bloomberg Tuesday, the US and China are attempting to restart trade negotiations to avoid a “full-blown trade war.”
Representatives of US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are reportedly conversing privately in a first step toward reopening negotiations. Sources quoted in the report said a specific timetable to discuss issues hasn’t been finalized, after negotiations to resolve the dispute have stalled for weeks.
The report said the next wave of US tariffs on Chinese imports will be effective as of Wednesday, with the possible imposition of another $16 billion in duties in the near-term, which would be delayed as the Trump administration decides which products will be targeted. Officials in Beijing have reportedly promised to respond with the same value of tariffs on US products.
The US Treasury Secretary’s efforts are in conflict with US Trade Representative Robert Lighthizer, whose department initiated the Section 301 investigation that resulted in tariffs after the case concluded China was stealing American technology.
Formal talks between the two countries started in May, issuing a joint statement that month that included a pledge to reduce the US trade deficit with China. Donald Trump backed away from the deal days later, and in July his administration imposed tariffs on $34 billion in Chinese imports, which Chinese officials said voided any promises made in negotiations. Beijing then responded in kind with its own tariffs on US products.