U.S. and Chinese officials are nearing a trade agreement ahead of a March 2019 summit, with China poised to reduce tariffs on U.S. goods including agricultural products, chemicals, and vehicles in exchange for sanctions relief, according to a report.
Tariff disputes between the two nations have disrupted global supply chains and impacted U.S. agricultural exports, with both sides imposing levies on hundreds of billions of dollars in goods. A potential deal would include a $18 billion natural gas purchase from Houston-based Cheniere Energy Inc, though the company declined to comment on the report.
Cheniere previously signed a 20-year contract to supply state-owned Chinese National Petroleum Corp with liquefied natural gas from its Louisiana terminal through 2043. U.S. Treasury Secretary Steven Mnuchin emphasized ongoing efforts to finalize a comprehensive trade agreement with structural commitments, while President Donald Trump warned of potential withdrawal from talks if terms proved unsatisfactory.
Officials cautioned that domestic political challenges could complicate the agreement, with each side facing criticism over perceived imbalances in the proposed terms.
