Trade war: United States and China “approach” an agreement, according to Washington adviser | Economy


The United States and China are approaching an agreement, with "very constructive" talks, according to White House economic advisor Larry Kudlow. Thus, the commercial war of the last 16 months would soon be over, the Reuters Agency.

The senior US official said the negotiators of the two largest economies in the world were in close contact by phone. However, he did not give more details about the timing of a possible agreement.

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"We are getting closer," Kudlow said at an event at the Council on Foreign Relations in Washington. "The background music is very good, and that has not always been the case in these things," he added.

The United States and China have been caught in successive waves of mutual tariffs that have caused turmoil in financial markets and threaten to drag the growth of the world economy at its lowest rate since the financial crisis of 2007-2008.

Markets are anxiously awaiting an agreement to end the uncertainty that has slowed corporate investment worldwide. In May there was a deal of agreement, but hopes were thwarted after US negotiators said China withdrew from the text of a draft agreement.

Kudlow's comments could alleviate market fears, which resurfaced again this week. This, by spreading that trade talks would have encountered a stumbling block in terms of how and when to reduce tariffs, as well as in regard to the level of purchases of agricultural products that could be expected from China.

Markets also suffered after US President Donald Trump said Tuesday that he could impose substantial new tariffs on China if an agreement was not reached.

Kudlow told the public that he had just arrived from a meeting of the main foreign trade officials of the Trump Administration and that he was more optimistic.

"It has not yet been done, but there has been a very good progress and the conversations have been very constructive," he said at the event.

In addition, Kudlow suggested that Trump and Chinese President Xi Jinping would not have to meet in person to close a deal.

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