China says trade deal not possible unless US lifts all tariffs

China stressed again on Thursday that in order to secure a trade deal, the U.S. needs to immediately scrap all the tariffs it has imposed on Chinese goods in the year-long conflict.

The U.S. has placed 25 percent tariffs on $250 billion worth of Chinese goods, although President Trump agreed to a ceasefire after meeting with Chinese President Xi Jinping at the G20 summit in Osaka, Japan last week. Trump said he would consider lowering the tax rate to 10 percent from the proposed 25 percent during “phase two.”

The leaders of the world’s two largest economies also said they will resume trade negotiations.

But for any deal to be reached, the remaining tariffs must be removed, according to Chinese Ministry of Commerce spokesman Gao Feng.

“The U.S. tariff hike on Chinese products was the trigger for bilateral trade frictions, so all the additional tariffs imposed since [the beginning of the trade war in July 2018] must be scrapped once there is a deal,” Gao told reporters on Thursday, according to the South China Morning Post.

In March, however, Trump told reporters that he wanted some tariffs to remain in place for a “substantial period of time” -- possibly extending beyond any trade agreement.

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Trade talks between the U.S. and China soured at the beginning of May when a near-deal crumbled after Washington officials accused China of reneging on some of its promises.