US says China trade deal has no agreement to reduce tariffs

WASHINGTON — The trade truce with China set to be signed on Wednesday does not include a deal to roll back tariffs imposed on most Chinese goods, US officials said in a statement Tuesday.

The joint statement from the Treasury and the US Trade Representative's office said "there is no agreement for future reduction in tariffs. Any rumors to the contrary are categorically false."

The statement came after a Bloomberg report said tariffs on billions of dollars in Chinese goods will stay in place until after the US presidential election in November, after which they might be removed.

After nearly 2 years of conflict and the exchange of punishing tariffs that have had a negative impact on business investment and global economic growth, President Donald Trump last month announced a "phase one" trade deal with Beijing.

As part of the deal he agreed to cancel a new tranche of painful import duties on consumer goods that had been scheduled to hit on December 15.

In addition the US agreed to slash in half the 15 percent tariffs on $120 billion imposed September 1 on consumer goods like clothing.

Officials have said the details of the trade pact will be made public Wednesday.

However, "There are no other oral or written agreements between the United States and China on these matters," the USTR and Treasury said.

Agence France-Presse 

APEC finance ministers express 'moderate' hope over US-China trade deal

SANTIAGO, Chile - APEC finance ministers expressed "moderate optimism" on Tuesday that the United States and China will end their trade war and sign an agreement during the forum's summit in Santiago next month.

For the last 18 months the world's 2 largest economies have been embroiled in a trade spat that saw tariffs placed on hundreds of billions of dollars' worth of goods.

US President Donald Trump announced a partial deal last week.

Treasury Secretary Steven Mnuchin added on Monday that US and Chinese officials would hold phone talks over the next 2 weeks to finalize the "phase one" trade deal.

Finance ministers and representatives of the Asia-Pacific Economic Cooperation (APEC) forum met in Santiago on Tuesday and discussed the possibility of a full trade deal being signed next month.

Chile's finance minister, Felipe Larrain, said such an agreement would be "highly significant."

While he was somewhat optimistic, he also he warned that "planning and good intentions and the idea to sign it are one thing. Actually signing it is another."

"Hence, in some there's this natural dose of skepticism."

Few specifics of the deal are known except that it covers intellectual property, financial services and currencies. Washington has also scrapped tariff increases planned for this week and could do so with others scheduled for December.

New Zealand's finance minister Grant Robertson warned against getting carried away, though.

"We also have to acknowledge that there is some way to go before this is fully resolved, but it is important for the whole world that this trade war is ended," he said.

The finance ministers are due to issue a joint statement backing free trade at the end of their meeting.

APEC is an inter-governmental forum made up of 21 economies that promotes free trade throughout the Asia-Pacific region.

Those economies make up 40 percent of the world's population, 60 percent of its gross domestic product and 50 percent of total trade, according to the Chile summit organizers.

The International Monetary Fund on Tuesday said the US-China trade war alone is estimated to shrink the world economy by 0.8 percent in 2020, but a truce would reduce that impact.

Policymakers should work to find resolutions to trade disputes, the IMF urged.

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US wants to make 'meaningful progress' in China trade talks

WASHINGTON - US trade negotiators want to make "meaningful progress" in upcoming talks with China, Treasury Secretary Steven Mnuchin said Thursday, one day after conciliatory gestures by both sides boosted hopes of an eventual resolution.

Mnuchin said on CNBC he is "cautiously optimistic" about chances for a deal to resolve the conflict, but Washington and Beijing will first hold talks at the deputy level to ensure senior officials who meet later can advance towards an agreement.

"We don't want a trip that's just a series of discussions. We want to make meaningful progress," he said.

However, he again warned that President Donald Trump will only accept a good deal, and is willing to raise tariffs if necessary.

There have been positive signs this week in the trade conflict, now entering its second year, as Trump agreed to Beijing's request to delay one round of tariff increases on $250 billion worth of goods for two weeks, until October 15, after China agreed to spare some US products from its retaliation.

China added Thursday that it was "making inquiries" about buying American farm products including big-ticket items like pork and soybeans, not on its previous list of spared goods.

"It is expected that China will be buying large amounts of our agricultural products!" Trump tweeted early Thursday.

American farmers have borne the brunt of the US-China trade spat, especially after US soy exports collapsed last year, virtually wiping out foreign markets farmers had spent years cultivating.

Trump has previously accused Beijing of backsliding on promises to increase purchases of US farm goods and has offered billions in aid to farms badly damaged in the trade war.

'CAUTIOUSLY OPTIMISTIC'

Senior US and Chinese officials are due to hold preliminary talks later this month, in preparation for meetings in early October led by Mnuchin and US Trade Representative Bob Lighthizer.

Mnuchin said "we clearly didn't make the progress we wanted to" at the last meeting in Shanghai in late July, but he added: "I'm cautiously optimistic. I take the Chinese in good faith that they want to come here with a deal now."

But he said Trump "is prepared to keep these tariffs in place. He's prepared to raise tariffs if we need to raise tariffs."

Trump's hardline trade adviser Peter Navarro said on CNN Thursday that the US is focused on addressing "seven acts of economic aggression" by China including "cyber-hacking of our computers to steal our business secrets, intellectual property theft" and "manipulation of the currency."

However Mnuchin said Hong Kong's pro-democracy movement "is definitely not on the table," as "That is an issue for the secretary of state to deal with."

Millions of people have demonstrated over the last 14 weeks in the biggest challenge to China's rule of the financial hub since its handover from Britain in 1997.

Hong Kong's pro-Beijing Chief Executive Carrie Lam warned the United States on Tuesday not to "interfere" with her government's response.

'EATING THE TARIFFS'

Reducing America's soaring trade deficit with China has long been a principal aim in Trump's trade battle with Beijing, but so far it has not led to a reduction in the trade imbalance. In 2018, the US goods trade deficit with China was $419.52 billion.

Trump has long viewed deficits as a defeat for the United States, arguing that they amount to stealing -- a position rejected by most economists.

Meanwhile the US president maintains that the protracted trade war is damaging China more than the United States, and China is "eating the tariffs."

The US Treasury has taken in $66 billion in customs duties in the 11 months through August, 73 percent more than in the same period of the prior fiscal year -- tariffs paid by American importers.

Experts have warned there are signs the US is also feeling the pinch, with job creation slowing across major industries last month, and manufacturing seeing a decided slowdown.

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US-China trade war deteriorates, as Trump lashes out at Beijing

WASHINGTON, United States —The United States and China exchanged blows Friday as each side increased punitive tariffs on the other, intensifying a trade war that is threatening to engulf the global economy.

In a rapid back-and-forth, Beijing took action against $75 billion in American goods in response to US tariffs announced August 1, and President Donald Trump lashed out in return by increasing existing and planned tariffs on a total of $550 billion in Chinese products.

Trump's blistering Twitter screeds called into doubt chances for a quick resolution to the trade war between the world's economic superpowers, which by the end of the year will cover nearly all imports and exports exchanged between the 2 countries.

Accusing China of "taking advantage of the United States on Trade, Intellectual Property Theft, and much more," Trump said, "we must Balance this very.... ...unfair Trading Relationship."

Existing 25 percent tariffs on $250 billion in Chinese goods will increase to 30 percent starting October 1, Trump said.

And tariffs on $300 billion in products, due to take effect September 1 at 10 percent, will now be set at 15 percent, he said.

"China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!)."

While Beijing worked for 3 weeks on its multi-tiered tariff response, Trump's promised retaliation—which came in a signature tweetstorm—was announced in less than 10 hours.

The rapidly changing conflict worries US companies, many of whom rely on China for inputs, for finished products they sell and for manufacturing.

"It's impossible for businesses to plan for the future in this type of environment," said David French of the National Retail Federation.

"The administration's approach clearly isn't working, and the answer isn't more taxes on American businesses and consumers. Where does this end?"

ORDERED TO MOVE

The attack came with Trump expected to ruffle feathers in France at the weekend meeting of leaders of the G7 nations. Tensions are mounting between Trump and the Europeans, Canada and Japan over trade tariffs.

The friction has already slowed US growth and undercut the global economy, and the threat of a deterioration sent stock markets falling sharply.

The Dow lost more than 600 points to close with a loss of 2.4 percent. The German DAX lost more than a percent but London's FTSE gained ground.

"Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing... your companies HOME and making your products in the USA."

"We don't need China and, frankly, would be far... better off without them," Trump said.

It was unclear under what authority Trump could demand that private companies alter their production.

But the influential US Chamber of Commerce urged the 2 sides to return to the negotiating table to find a solution.

"While we share the president's frustration, we believe that continued, constructive engagement is the right way forward," Myron Brilliant, the business group's head of international affairs, said in a statement.

CHINA RESPONDS

China's punitive tariffs of 5 to 10 percent will apply to 5,078 US items, and are timed to start in tandem with the new US duties set to take effect in 2 steps—September 1 and December 15, China's state council tariff office said.

Beijing also announced it would reimpose a 25 percent tariff on US autos and a 5 percent tariff on auto parts, also starting December 15. China had lifted those tariffs earlier this year as a goodwill measure while trade talks were underway.

Trump already imposed steep tariffs on $250 billion in Chinese goods, with a further $300 billion in imports targeted in the coming rounds.

Beijing has hit back with duties on around $110 billion of US goods—or nearly all of the $120 billion worth of American goods it imported last year.

China's commerce ministry said it will hit American frozen lobster, frozen chicken feet, peanut butter and 914 other goods with new 10 percent punitive tariffs starting September 1.

Soybeans, crude oil and other energy goods face 5 percent tariffs.

US-made mango juice, electric buses and chemical products face 10 percent duties come mid-December while smaller aircraft, hand pumps and bearings will be hit with 5 percent taxes.

Federal Reserve Chair Jerome Powell warned in a speech Friday that trade tensions were exacerbating the global slowdown and the central bank does not have a "rulebook" for dealing with the fallout.

But he also vowed to "act as appropriate" to sustain the US economy.

An alarm bell went off in the US Treasury bond market last week when 10-year bond yields briefly fell below the yields offered on a 2-year bond—seen as a sign of looming recession—and it happened again Friday.

US officials have said in recent days that trade talks with China would continue next month.

However, China's commerce ministry spokesman Gao Feng said Thursday he had no information on the next round of meetings, while noting the 2 sides remain in contact.

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China says Canadian stole secrets; Huawei to sue US

BEIJING/OTTAWA -- China's government and its leading smartphone maker, Huawei Technologies Ltd, stepped up pressure on Monday on the US and Canadian governments in a dispute over trade and telecoms technology that has ensnared Huawei's CFO, who faces US criminal charges.

China on Monday accused detained Canadian citizen Michael Kovrig of stealing state secrets passed on to him from another detained Canadian, businessman Michael Spavor, in a move likely to increase tension between Ottawa and Beijing.

The telecom gear maker is also preparing a lawsuit against the US government over a law that restricts its market access.

It was the latest escalation of an unprecedented crisis for Huawei, the world's largest telecommunications equipment maker and No. 2 manufacturer of smartphones, as Washington calls on governments around the world to stop using its gear, particularly in the next generation of telecommunication networks, known as 5G.

Spavor, a business consultant with deep ties to Pyongyang, had been trying to drum up international interest in investing in North Korean economic projects. He and Kovrig, a former diplomat, were picked up in December, shortly after Canada arrested Huawei Chief Financial Officer Meng Wanzhou, who faces extradition to the United States.

The Communist Party's Central Political and Legal Affairs Commission said Kovrig had often entered China using an ordinary passport and business visas, "stealing and spying on sensitive Chinese information and intelligence via a contact in China."

"We are obviously very concerned with this position that China has taken," Canadian Prime Minister Justin Trudeau said about the accusations on Monday. "We’ve been engaging and standing up for the two Canadians who have been arbitrarily detained by China from the very beginning."

Lawyers for Meng are suing the Canadian government, its border agency and federal police, alleging their client was detained, searched and interrogated for three hours in violation of her constitutional rights.

Canada arrested Meng in Vancouver on Dec. 1 at the request of the United States, which has charged her with bank and wire fraud to violate American sanctions against Iran by doing business through a subsidiary it tried to hide.

HUAWEI TO SUE

In another escalation of the trans-Pacific dispute, Huawei plans to announce a lawsuit against the US government on Thursday on grounds related to a defense bill, a source with knowledge of the matter told Reuters.

Huawei will challenge an addition to the US National Defense Authorization Act (NDAA) signed last year, which controlled US government contracts with Chinese companies and strengthened the role of the panel that reviews foreign investment proposals. Beijing has condemned the NDAA act as targeting China.

Trump last year signed the law that limits Huawei and ZTE Corp's access to U.S. government and military contracts. That is part of an all-out US effort to close the two companies' access to not only the US market but major telecoms markets around the world where 5G networks are being designed and built.

US lawmakers introduced bills earlier this year that would ban the sale of US chips or other components to Chinese telecommunications companies that violate US sanctions or export control laws.

US officials have alleged Chinese telecom manufacturers are producing equipment that allows their government to spy on users abroad, including Western researchers working on leading-edge technologies. Beijing and the Chinese companies have repeatedly denied such allegations.

Trump is considering declaring a national emergency that would bar US companies from using telecommunications equipment made by Huawei and ZTE, three sources familiar with the situation told Reuters in December.

The Justice Department has also charged Huawei with stealing robotic technology from T-Mobile US Inc.

Trump said in February he may or may not include Huawei and ZTE in the trade deal being negotiated with China. Trump told reporters at the White House that US officials were not talking about dropping charges against Huawei.

Also on Monday, US Secretary of State Mike Pompeo said he thought his country and China were "on the cusp" of a deal to end their trade war.

HUAWEI CFO IN LIMBO

Meng, who is out on bail, is due to appear in a Vancouver court on Wednesday, when a date will be set for her extradition hearing. Ottawa rejects Chinese calls to release Meng, saying it cannot interfere with the judiciary.

The Canadian government approved her extradition proceedings on Friday. China, whose relations with Canada have deteriorated badly over the affair, denounced the decision and repeated previous demands for Meng's release.

It could be years before Meng, the daughter of Huawei's founder, is sent to the United States since Canada's slow-moving justice system allows many decisions to be appealed.

A final decision will likely come down to the federal justice minister, who will face the choice of angering the United States by rejecting the extradition bid, or China by accepting it.

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US and China close to reaching trade deal: report

NEW YORK -- The United States and China are close to reaching a major trade deal that would see both sides lower some of the tariffs imposed during an often-bitter trade war, a report said Sunday.

Negotiators for the 2 sides have made substantial progress and a final accord is close to being hammered out, according to the Wall Street Journal, which quoted anonymous sources on both sides.

A deal would be welcomed by financial markets, which have suffered through the often-rancorous trade conflict between the world's two largest economic powers.

The Journal said talks last month in Washington had helped narrow differences, meaning a formal agreement might be ready when President Donald Trump and his Chinese counterpart Xi Jinping meet in late March while Xi is on a European trip.

It stressed, however, that some hurdles remain, and that the pact will likely spark complaints on both sides that too much has been given away.

The report said China had tentatively agreed to lower tariffs or ease restrictions on farm, chemical and auto products, among others.

Chinese negotiators have also offered to speed up the timetable for removing foreign-ownership limits on car ventures and to reduce tariffs on imported vehicles to below the current 15 percent rate, according to the Journal.

In a move meant to respond to Trump's repeated demands for a narrowing of America's trade gap with China, Beijing would also increase its purchases of US goods, including a possible multi-billion-dollar buys of natural gas from the Cheniere Energy group.

In exchange for Chinese concessions, Washington would do away with most of the trade sanctions it imposed last year, the report said.

The paper quoted analysts as saying that the failure of Trump's recent summit talks with North Korean leader Kim Jong Un in Hanoi could affect the trade talks in one of two opposite ways.

It could persuade Beijing that Trump is desperate for a win, or China might take it as a sign that Trump, as his advisErs say, is willing to walk away from a bad deal.

The year-long tit-for-tat trade war has imposed punishing tariffs totaling many billions of dollars on a large portion of the trade between the two economic powers.

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US, China sprint to seal deal ahead of Trump's deadline

WASHINGTON -- US and Chinese negotiators met for over seven hours on Saturday to resolve their trade dispute and avoid an escalation of the tit-for-tat tariffs that have already disrupted global commerce, slowed the world economy and roiled financial markets.

The 2 sides will meet again on Sunday morning as they race to seal an agreement before a March 1 deadline imposed by US President Donald Trump, who has threatened to dramatically hike tariffs on Chinese goods unless there is a deal.

Saturday marked the fifth straight day of the negotiations between the world's two biggest economies. Talks were extended through the weekend after both sides reported progress in narrowing their differences.

The Chinese delegation is scheduled to leave for Beijing on Monday, according to a person familiar with their itinerary.

This is the fourth round of negotiations since Washington and Beijing agreed to a ceasefire in their trade war.

Trump, who has embraced an "America First" policy aimed at rebalancing global trade in favor of the United States, said on Friday there was "a very good chance" a deal would be struck, and that he was inclined to extend his March 1 tariff deadline and meet soon with Chinese President Xi Jinping.

Extending the deadline would mean putting on hold a scheduled increase in tariffs to 25 percent from 10 percent on $200 billion of Chinese imports into the United States.

Trump and US Treasury Secretary Steven Mnuchin said US and Chinese officials had reached an agreement on currency issues, but did not give details. US officials have long argued that China's yuan is undervalued, giving it a trade advantage and partly offsetting US tariffs.

China has also committed to buy an additional 10 million metric tons of US soybeans.

ENFORCEMENT MECHANISM

Reuters reported exclusively on Wednesday that both sides were drafting memorandums of understanding (MOUs) on cyber theft, intellectual property rights, services, agriculture and non-tariff barriers to trade, including subsidies.

On Friday, Trump said he did not like MOUs because they are short-term in nature, and he wanted a long-term deal.

An industry source briefed on the talks said both sides have narrowed their differences on intellectual property rights, market access and narrowing a nearly $400 billion US trade deficit with China. But bigger differences remain on changes to China's treatment of state-owned enterprises, subsidies, forced technology transfers and cyber theft.

There is no agreement on the enforcement mechanism, either. The United States wants a strong mechanism to ensure the Chinese reform commitments are followed through, while Beijing insists upon what it calls a "fair and objective" process.

"Enforcement is a difficult puzzle," said the source, who requested anonymity to speak candidly about the talks. "You need objective arbitrators to make a decision."

It was not clear whether Saturday's talks managed to iron out those differences. Neither side shared the details of the day's discussions.

Trump said the biggest decisions could be reached when he meets with Xi, probably in Florida next month, and that they may extend beyond trade to encompass Chinese telecommunications companies Huawei Technologies and ZTE Corp.

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Trump says China trade deal likely as talks extended

WASHINGTON -- US President Donald Trump said on Friday a trade summit with Chinese leader Xi Jinping was likely next month, and hailed 2 days of "very good talks" by negotiators.

The negotiations were extended through Sunday as officials race to reach a deal ahead of a deadline next week when US duty rates are due to rise sharply.

But Trump again said he was considering pushing back the deadline for raising tariffs on more than $200 billion in Chinese exports.

"We expect to have a meeting sometime in a not too distant future," he said of the meeting with Xi. "Probably fairly soon in the month of March."

Details remained scant about any concrete progress in the seven-month-old trade war, which has rattled global markets and prompted stark warnings about the risks to the world economy.

"I think there is a very, very good chance that a deal can be made," Trump told reporters at the White House on a second day of trade negotiations with Chinese officials.

"If we are doing well, I could see extending that" deadline for the end of the 3 month tariff truce.

And Trump said an agreement on currency manipulation will be included in the trade pact. Officials from Beijing also expressed optimism about a positive outcome.

"From China, we believe that it is very likely that it will happen," Chinese trade envoy Liu He said, speaking through an interpreter.

WINNING STREAK 

Global stock markets were higher on expectations the two sides would avoid further deterioration in their trade relations. 

Wall Street rose to a banner finish, posting its longest streak of weekly gains in nearly 24 years.

Analysts say the 2 sides are likely to trumpet mutual agreements to resolve the easier parts of the trade dispute -- increasing purchases of American goods, more open investment in China and tougher protections for intellectual property and proprietary technology.

The harder parts covering issues like scaling back China's ambitious industrial strategy for global preeminence, are another question.

Christine Lagarde, head of the International Monetary Fund, again warned that the US-China trade tensions a "major risk" to world economic growth.

Since July, the countries have hit out with tariffs on more than $360 billion in 2-way trade.

While the tariffs alone are having "minimal" effect on global trade, they are damaging business confidence and weighing on stock markets, Lagarde told the US radio program Marketplace on Thursday.

"I cross my fingers every morning and my toes every evening because I hope that it is going to end up with a way to fix the system, not break it," she said.

The IMF has cut its forecast for global growth this year due to the combined impact of the trade war.

GOOD FAITH 

Beijing has reportedly proposed an increase in its imports of US energy and agricultural exports significantly. 

US Agriculture Secretary Sonny Perdue tweeted that China has committed to buying "an additional" 10 million metric tons of soybeans as a "show of good faith," but he did not give any details or specify the timeframe.

Still, a broader deal could be difficult given the US demands for far-reaching structural changes.

Gary Clyde Hufbauer, a trade expert at the Peterson Institute for International Economics, said China may have to remove its tariffs in order to increase purchases of US goods, but Trump may feel no pressure to roll back the duties he imposed last year.

"The big surprise would be a complete removal of tariffs by Trump but I'm expecting an asymmetrical removal of tariffs by China in order to get to some of these numbers," he said.

China's retaliation has hit US farm exports hard. The US Agriculture Department estimated this month that US soy exports would not turn to their pre-trade war levels for another six years.

William Reinsch, a former senior Treasury official for trade in the administration of President Bill Clinton, told AFP a risk for Trump is whether any agreement holds and the Chinese honor their commitments.

"If it unravels and we have a string of unmet commitments and then US retaliation right before the election, we're kind of right back where we started," he said.

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Tariffs, tariff threats, talks: Trump faces key week on trade

WASHINGTON - The United States on Monday launched into a key week for trade policy, with Washington due to slap fresh tariffs on Chinese goods and hold hearings to impose even more duties.

US and Chinese officials will simultaneously hold talks in an effort to defuse the dispute.

In addition, US negotiators will continue talks with Mexico aimed at rewriting the nearly 25-year-old North American Free Trade Agreement, which officials are hopeful they can conclude by year end.

President Donald Trump's aggressive actions against China and other trading partners are increasingly worrying businesses and farmers hurt by the tariffs and retaliation.

Dozens of industry representatives will voice those concerns on Monday in the first of 6 days of public hearings on the impact of the next planned round of tariffs, in which the Trump administration is poised to slap 25 percent duties on $200 billion more in Chinese goods.

Interests as diverse as the American Bridal Prom Industry Association, the Juice Products Association, the American Petroleum Institute and the Vapor Technology Association have signed up to urge the US Trade Representative's office to reconsider the tariffs, which could take effect as soon as September.

The tariff proposal "dramatically expands the harm to American consumers, workers, businesses, and the economy," the US Chamber of Commerce said in a statement.

"Help me keep my company alive," Ross Bishop of BrightLine Bags, which produces roll-aboard suitcases, pleaded at the start of the week's hearings in Washington.

He said his company would face an "unjustifiable" tax of nearly 43 percent.

Others at the hearing lamented the multi-million dollar cost increase which will be a tax on consumers.

Stephen Lang, representing bridal and prom dress businesses, said that industry -- which is not yet targeted for tariffs -- relied on China because labor costs were prohibitive in the United States. 

"Their labor is like oil for the rest of the world," and tariffs would decimate our industry, he said.

'CONSEQUENTIAL IMPACTS' 

But earlier rounds of tariffs have shown that complaints to the Trump administration have largely fallen on deaf ears, as only a handful of product lines have been shielded from the new punitive duties.

Trump insists the tough tactics will pressure China to reform what US officials say are unfair practices, including theft of American technology.

Meanwhile, another $16 billion in Chinese goods will face new taxes starting Thursday at 12:01 am, rounding out the first round of $50 billion in goods targeted. China has said it will react immediately with tit-for-tat tariffs on US goods.

And still pending are Trump's proposed 25 percent taxes on all auto imports to protect the US industry.

Business economists overwhelmingly worry trade wars will harm the US economy, according to a survey released Monday, which warned of "unfavorable consequential impacts."

The administration already was forced to announced a $12 billion aid program for farmers hurt by the trade wars, as US agricultural products, like soybeans, were an easy target for China and others.

US and Chinese officials are set to hold two days of talks in Washington starting Wednesday in an effort to find a way out of the escalating trade confrontation. 

These are the first formal discussions since June, and will be led by China's Vice Commerce Minister Wang Shouwen, the deputy representative on international trade negotiations, and David Malpass, a senior US Treasury official.

NAFTA REWRITE 

Efforts to revise NAFTA seem a bit more hopeful, after USTR Robert Lighthizer telling Trump last week he hoped to get a breakthrough in the talks in coming days.

Mexico's Economy Minister Ildefonso Guajardo said he will return to Washington on Tuesday to continue the discussions on the key US-Mexico issues, which he said could be wrapped up by mid-week, after which Canada will rejoin the talks.

There remain "a couple of things that have to be settled," including the US demand for a "sunset clause" that would end the trade pact after five years unless it was reauthorized.

The 3 countries have been negotiating for a year to salvage the trade pact that Trump called a "disaster" for the United States.

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