Myron Brilliant, executive vice president of the Chamber of Commerce, said the talks between the White House and China on a new trade deal were “94.5% finished” and close to “endgame” status.
The deal could lead to a substantial rollback of the 10%-25% tariffs that the Trump administration has put on $250 billion worth of Chinese goods, though probably not all.
“The tariffs issue is very much front and center … You can imagine a situation where a substantial portion of the tariffs are eliminated on the U.S. side and where some portion of the tariffs on the Chinese side, if not all, are lifted,” Brilliant told reporters Thursday. The Chamber has been in touch with the Trump administration and Beijing negotiators throughout the talks.
Brilliant added, “I’m not suggesting that this is how this will be resolved.” He said the remaining unresolved parts mainly involved the deal’s enforcement mechanisms, which have been its biggest stumbling block. The Trump administration wants to keep some tariffs as leverage and to place additional tariffs on China if it violates its part of the deal, proposals Beijing has resisted.
“The endgame for us is to see all tariffs eliminated on both sides, but the administration has said publicly and privately that having some tariffs on China gives them some leverage,” Brilliant said.
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Stephen Mnuchin are in Beijing to continue the negotiations. The talks are expected to extend into next week with Chinese Vice Premier Liu He coming to Washington.
China has placed tariffs ranging from 5%-25% on $130 billion worth of U.S. goods.
“Don’t underestimate that last few percent as being critical,” Brilliant said. He said the Chamber was nevertheless “optimistic” that a deal would be reached soon.
