US offers China tariff rate cut

The United States has offered to cut existing tariffs on Chinese goods by as much as 50% and suspend new tariffs scheduled to go into effect on Sunday in an attempt to secure a "Phase One" trade deal.

US negotiators have offered to reduce tariffs on about $375 billion in Chinese goods by 50% across the board, two people familiar with the negotiations said on Thursday, and suspend tariffs on $160 billion in goods scheduled for Dec. 15.

US Trade Representative Robert Lighthizer told senators during a briefing that announcements were possibly "imminent" on US tariffs, Senator John Cornyn told reporters.

US President Donald Trump and Chinese President Xi Jinping have been embroiled in a 17-month trade war that has slowed global growth and dampened profits and investment for companies around the world.

Dec. 15 is a crucial date. If the United States does not suspend the new tariffs, Beijing officials will apply more tariffs on US goods and may suspend talks until after the US presidential election in November 2020, many trade experts believe. Trump is expected to meet top trade advisers at 2:30 on Thursday afternoon to discuss trade negotiations.

The final percentage of tariff rate reduction the United States might offer Beijing has not been set, and will be proportional to the amount of the Section 301 trade war issues addressed by Chinese concessions, one source said.

Trump said on Thursday the United States was "very close" to nailing down a deal. "Getting VERY close to a BIG DEAL with China," Trump posted on Twitter. "They want it, and so do we."