The US expects to reduce its trade deficit with China to $140 billion by 2026, according to US Trade Representative Jamieson Greer.
“The deficit was $300 billion at the start of Trump's second term, and now we are on track to have a trade deficit with China of just $140 billion this year“, Greer said in an interview with CNBC, noting that that figure has already been reduced by almost 40%.
Chinese President Xi Jinping is making his first state visit to the US in 11 years from September 23 to 25. Trump visited China in May at the invitation of the Chinese leader.
Washington and Beijing have agreed to more favorable terms for the sale of certain goods so that additional tariffs will not be imposed on them if further disputes arise, said US Trade Representative Jamieson Greer.
“We want to have a certain category of goods that we can trade with China on a more preferential basis: we supply them with agricultural products and medical equipment, and we receive from them consumer goods and other products that are not considered sensitive. We have reached an agreement with China on a number of these things, and if we have a trade dispute in the future and tariffs are imposed, those items will not be affected,“ he said on CNBC.
Greer noted that Washington and Beijing have “made progress“ and promised that “more details will be released on Monday about what has been achieved in the last few weeks of negotiations with China“.
Earlier, US President Donald Trump described his talks with Chinese President Xi Jinping as very productive for both sides.
Xi Jinping is making his first state visit to the United States in 11 years from September 23 to 25. Trump visited China in May at the invitation of the Chinese leader.