US-China trade war negotiations make headway

The U.S. and China are moving closer to a trade agreement following Friday’s conference call between trade negotiators from the two countries, sending the benchmark S&P 500 close to its intraday record high of 3,027.98.

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U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin "made headway on specific issues" during a talk with China’s Vice Premier Liu He about the initial phase of a trade agreement between the two countries, the Office of the U.S. Trade Representative said in a statement.

“The two sides are close to finalizing some sections," Lighthizer's office said. "Discussions will go on continuously at the deputy level, and the principals will have another call in the near future.”

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On the call, China's trade negotiators were expected to ask the U.S. not to impose 15 percent tariffs on Dec. 15. It is unclear what, if anything, was agreed to.

Earlier Friday, the trade representative's office approved more exclusion requests for China, including erythritol for keto dieters, and kerosene heaters and electric fireplaces as colder weather nears.

The tentative U.S.-China deal, which has not yet been signed, is said to include China making concessions on intellectual property, financial services and agriculture. In return, the U.S. agreed not to implement new tariffs on Chinese goods on Oct. 15.

After Friday's call, White House trade advisor Peter Navarro told Fox News' "America's Newsroom" that the two sides "seem to be on the glide path" to a mid-November signing when President Trump and Chinese President Xi Jinping are scheduled to attend the Asia-Pacific Economic Cooperation summit in Chile.

Trump has said a comprehensive trade deal will have two or three phases.

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FOX Business' R.N. White and Edward Lawrence contributed to this report.