Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

U.S. says March 1 'hard deadline' for trade deal with China

Published 12/10/2018, 03:19 AM
Updated 12/10/2018, 03:19 AM
© Reuters. Shipping containers are seen at a port in Lianyungang

WASHINGTON (Reuters) - Unless U.S.-China trade talks wrap up successfully by March 1, new tariffs will be imposed, U.S. Trade Representative Robert Lighthizer said on Sunday, clarifying there is a "hard deadline" after a week of seeming confusion among President Donald Trump and his advisers.

Global markets are jittery about a collision between the world's two largest economic powers over China's huge trade surplus with the United States and U.S. claims that China is stealing intellectual property and technology.

"As far as I am concerned it 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 CBS show "Face the Nation," referring to Trump's recent decision to delay new tariffs while talks proceed.

"The way this is set up is that at the end of 90 days, these tariffs will be raised," said Lighthizer, who has been tapped to lead the talks and appeared to tamp down expectations that the negotiation period could be extended.

After a turbulent week in markets, investors "can be reassured that if there is a deal that can be made that will assure the protection of U.S. technology...and get additional market access...the president wants us to do it," Lighthizer said. "If not we will have tariffs."

In Beijing, foreign ministry spokesman Lu Kang said both countries' economic and trade teams were "intensifying contacts and consultations", when asked if China was sending a trade negotiation delegation to the United States this week.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"We hope both can earnestly, with joint efforts, put into effect the consensus reached by the two countries' leaders at the Argentina meeting," he told a daily news briefing.

In Argentina last weekend, Trump and Chinese President Xi Jinping agreed to a truce that delayed the planned Jan. 1 U.S. hike of tariffs to 25 percent from 10 percent on $200 billion of Chinese goods while they negotiate a trade deal.

However, the arrest of a top executive at China's Huawei Technologies Co Ltd [HWT.UL] has roiled global markets amid fears that it could further inflame the China-U.S. trade row. In Beijing on Sunday, China's foreign ministry protested the arrest to the U.S. ambassador.

In a series of appearances on the Sunday morning talk shows, Lighthizer, economic adviser Larry Kudlow, and trade adviser Peter Navarro insisted the trade talks with China would not be derailed by the arrest, which they deemed solely a law enforcement matter.

U.S. equity markets have staked much on the outcome of the talks. Stocks climbed early in the week on optimism tensions between the two sides were easing, then cratered after Trump claimed he was a "tariff man" after all. He also seemed to indicate the talks could be extended.

But Lighthizer, in his first comments since being appointed to lead the negotiations, said the United States would need concessions across a number of areas in coming weeks if the higher tariffs are to be avoided.

That includes demands for increased purchases of U.S. goods in a more open Chinese market, as well as "structural changes" to a system that, for example, forces American firms to turn over technology to Chinese partners as a condition of doing business.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"We need agricultural sales and we need manufacturing sales. We need structural changes on this fundamental issue of non-economic technology transfer," Lighthizer said.

The demands are similar to those made under previous Democratic and Republican presidents, but Lighthizer said he felt Trump's willingness to go beyond "dialogue" and impose tariffs would produce results.

Latest comments

That is not how China negotiate. You go hard dead line, they will close their ears, and take the blunt of market sell off. Those don't care. They will wait until Trump is locked up and then begin negotiation.
wall street wants Trump ousted imho
I will happen if Trump supporters elect Trump Chinese president.
Trump could be gone by March 1st.
It would be wise for North American governments to also make new incentives and tax laws to reverse the exportation of jobs as well as set up a ministry for companies investing and doing business in China.. Another ministry needs to be set up to supervise Chinese companies doing business in North America. This is to guide the flowing of business from a non-democratic, communist China to a democratic, non-communist country like North America. Obviously, Chinese executives must adhere to host country rules and conversely North American companies doing business in China must be guided to tailor their business style to Chinese host country rules.
It will not happen before US has army in China, just like in South Korea and Japan.
   Xi's daughter is currently studying Psychology PhD in Harvard, so Xi will bow down
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.