U.S. officials are considering removing tariffs on $112 billion worth of Chinese goods as a concession to seal a “Phase 1” trade deal, the Financial Times reported late Monday.
The 15 percent tariffs on items such as clothing, appliances and flat-screen monitors were put into effect on Sept. 1. The Financial Times said the U.S. would expect something in return, such as tougher intellectual-property protections for U.S. companies.
This story by Mike Murphy originally appeared in MarketWatch.
The Wall Street Journal reported similar news Monday night, saying that removing tariffs would likely be a part of any initial trade deal and that both countries have agreed in principle to the deal. The “Phase 1” agreement includes China purchases of U.S. agricultural goods, rules to stop currency manipulation and measures to protect intellectual property.
The U.S. has already put off tariff hikes from 25 percent to 30 percent on $250 billion of Chinese imports that were to have taken effect in October, and has suggested it may put off tariffs on another $160 billion in Chinese goods set to take effect Dec. 15 if an initial trade deal is signed.