Just days before President Trump's self-imposed deadline for China to avoid another round of import taxes on $200 million worth of goods, the administration's top trade talker will speak with a congressional committee.
On Wednesday in the week ahead, U.S. Trade Representative Robert Lighthizer is scheduled to testify to the House Ways and Means Committee. Lighthizer was in Beijing about a week ago leading the American trade negotiators in their talks with Chinese officials. There were low-level talks in early January, and a two-day round of negotiations in Washington. The February Beijing talks represented the highest-level talks ahead of the looming March 2 deadline.
Or maybe it doesn't loom after all.
Last week, President Trump declared the deadline "not a magical date."
The U.S. slapped 10 percent taxes on billions of dollars of Chinese imports into America. China responded with its own taxes on USA-made goods. In December, Trump postponed hiking the American tariffs to 25 percent until March 1.
While it's not entirely attributable to the trade war, economic confidence in both countries has waivered over the past year of the trade war.
What progress is being made toward a deal? What does a deal look like for the U.S.? Would a deal roll back previous tariffs? How would an agreement protect American know-how in China? Should the Chinese be required to keep the value of their currency stable, offsetting efforts to undercut U.S. taxes? If there's hope for a comprehensive trade pact, how will future differences be worked out so as not to reignite a tax-for-tax trade war?
Congress may be the ones asking these questions of the U.S. trade chief, but investors will be closely listening.
