China is expected to request the cancellation of some American tariffs targeting Chinese goods in exchange for Beijing purchasing additional U.S. agricultural products.
Reuters released that report Friday, saying Chinese officials will issue the request during planned talks on Friday.
The report suggests China will ask American officials to scrap plans to impose additional tariffs on Chinese products on December 15.
Beijing will reportedly also request the U.S. cancel 15% tariffs which were implemented back in September, and target $125 billion of Chinese products.
Despite the upcoming request and optimism surrounding Phase One of the trade agreement, Secretary of Treasury Steven Mnuchin has made it clear the U.S. is likely to enact more tariffs on Chinese goods if no deal is reached by December 15.
The negotiations will take place by phone and will involve Mnuchin, U.S. Trade Representative Robert Lighthizer, and Chinese Vice Premier Liu He.
This report surfaced after President Trump announced earlier this month the U.S. had reached a “very substantial Phase One deal” with the Chinese delegation during high-level trade talks in Washington.
The deal reportedly addresses various points of contention between the U.S. and China including intellectual property and financial services.
According to the president, the second phase of the trade deal will start quickly after Phase One is signed.
He has made it clear the ultimate goal is for both parties to sign the agreement during the upcoming Asia-Pacific Economic Cooperation summit in Chile next month.
Both President Trump and Chinese President Xi Jinxing will be in attendance, discussing both free trade and multilateralism during the two-day event.
The trade war has been ongoing for around a year now, which has involved both Beijing and Washington imposing retaliatory tariffs on each other’s goods.