• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Global Trade & Economics » Trump and Xi Are Close to a Deal, But the Trade War Isn't Over

Trump and Xi Are Close to a Deal, But the Trade War Isn't Over

China
March 5, 2019
Bloomberg

The world’s two largest economies are nearing the finish line on a trade deal that could be signed by President Donald Trump and his Chinese counterpart Xi Jinping as early as this month. But that doesn’t mean the trade war ends.

More work remains on a deal that will ensure that Beijing will follow through on its commitments, U.S. Trade Representative Robert Lighthizer told Congress last week. Days later, Trump warned he can still walk out on China like he did with North Korean leader Kim Jong Un at their summit over a nuclear deal in Vietnam.

There was a sign of de-escalation on Tuesday, when the U.S. confirmed it’s postponing “until further notice” a scheduled tariff increase on Chinese goods. It had been set to take effect March 1, but now the rate will remain at 10 percent, according to a statement from the U.S. Trade Representative’s office.

Here’s the latest on where the U.S.-China trade negotiations stand.

Tariffs Truce?

China wants Trump to remove tariffs that he imposed last year on $200bn of Chinese goods, but it’s not yet clear if the president will roll back some or all of the duties. (The U.S. duties on $200bn of Chinese imports come on top of a first round on $50bn of goods, which Beijing will also wants to see eliminated.)

There are competing forces inside the Trump administration that are debating how wise it would be to lift the duties on the first day of a deal because keeping some of the tariffs in place would allow the U.S. to maintain leverage.

Some advisers argue that the tariffs should only be fully removed once China lives up to all of its pledges, which could take months or even years. Even if some or most tariffs are removed at the outset they could come back as part of the enforcement mechanism, to punish China if it breaks the terms of any trade deal, Lighthizer said last week.

Still, the U.S. president has repeatedly delayed implementing higher duties on goods to give the two sides more time to strike a broad deal.

Enforcement Piece

Lighthizer has said the two countries plan to set up a system that requires regular consultations at various levels of the U.S. and Chinese governments to address irritants. If talking doesn’t yield progress, Lighthizer said the U.S. will respond with ”proportional” and ”unilateral” action, likely referring to tariffs.

On its face, the mechanism looks similar to previous negotiating efforts the U.S. and China used to discuss trade issues — and that the Trump administration said it would abandon because they haven’t been successful in getting Beijing to make the required changes to its trade policies. China hawks have already picked up on that, which could make it even harder to sell the agreement to a skeptical audience that’s expecting a different result from this White House than what previous administrations got in years of failed economic dialogues.

Trump’s team is asking China to give up its right to retaliate should the U.S. take action unilaterally. The U.S. also wants China to refrain from bringing any challenges at the World Trade Organization. It’s not clear if Beijing has agreed to that plan yet and what, if any, changes it is asking for.

Soybean Solution

While Lighthizer has emphasized that he’s seeking a deal that’s more than what he dubbed a “soybean solution,” significant amounts of purchases are on the table in the talks.

China has offered to increase purchases of U.S. goods by $1.2tr over six years, benefiting agriculture and energy. That would help sell the deal to the president who has pledged to reduce the chronic U.S. trade deficit with Beijing.

Trump on Friday asked China to immediately remove all tariffs on U.S. agriculture, though he didn’t indicate if his demand was limited to retaliatory duties or more far-reaching.

But Lighthizer and his team are more focused on China making structural changes to its intellectual property practices and policies that require U.S. companies to transfer their technology to Chinese entities as a condition of doing business in the country.

Tricky Politics

Trump’s deal will most definitely be scrutinized by Democrats and more hawkish members of his own party who have been outspoken about the need for the president to hold a tough line in the talks with Beijing. Senate Minority Leader Chuck Schumer last week urged Trump to hold out until he gets a deal that addresses structural issues in China’s economy.

“President Trump should not fall into the trap of seeking a deal for the sake of a deal, especially now that the talks with Pyongyang are on hold,” Schumer said on Thursday. “What he did in North Korea was right, he must do the same thing in China — hold out, because he has the upper hand, until we get China to do the right thing.”

Still, Trump doesn’t need, at least practically-speaking, the help of lawmakers. The White House will treat this deal as a so-called executive agreement, that doesn’t require the Congressional stamp of approval, because there won’t be changes to U.S. tariff lines.

    RELATED CONTENT

    RELATED VIDEOS

    Global Trade & Economics Regulation & Compliance
    KEYWORDS China Global Trade & Economics North America Regulation & Compliance
    • Related Articles

      U.S., China Are Close to a Trade Deal That Could End U.S. Tariffs

      China’s Taste for Soybeans Is a Weak Spot in the Trade War With Trump

      North Dakota Soybean Farmers, Caught in the Trade War, Watch the Season Close on Their Crop

    Bloomberg

    German Rail Struggles With Rhine Diversions

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • Stacks of multi-colored shipping containers arranged in rows at a port, with rows of blue and grey shipping cranes lining the background along the coastline

      Port of Savannah Approved for New 3.5M TEU Terminal

      Global Gateways
    • An overhead view of a port, with stacks of containers and vehicles moving through rows

      Podcast | AI in Supply Chain Planning: Impact, Promise and Limits

      Artificial Intelligence
    • A cartoon illustration of a man sitting at a desk in front of a laptop, surrounded by five faceless humanoid robots

      The Productivity Story Everyone is Missing

      Technology
    • On Demand Webinar Locus Robotics Thu Oct 15 2026 11a ET.png

      Designing for Uncertainty: A Flexibility-First Approach to Warehouse Automation

      Webinars
    • A row of semi-truck cabs, with a red truck in the foreground, parked next to four white trucks, two more red ones, and three blue ones

      USDOT Announces $200M in Funding for Commercial Truck Parking

      Logistics

    Digital Edition

    Scb q3 26 cover

    100 Great Supply Chain Partners 2026: The Secret to Supply Chain Success

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Amazon Freight Anaplan
    Arkieva AutoStore Blue Yonder
    Canadian National Railway Company Carton Cloud CoEnterprise
    Dassault Descartes Dexory
    Duravant E2Open EPG
    General Logistics Systems GEP Hy-Tek
    iGPS Knapp Korber
    Lyngsoe Odyssey Logistics OMP
    PeakAI Procurability Quinyx
    SAP Sikick Staples
    S&P Global Mobility Systech TADA
    Tive TransImpact US Bank
    Werner WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing