US and China edging towards a trade deal, says Trump

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By Daniel Bellamy  with Reuters
US and China edging towards a trade deal, says Trump
Copyright  REUTERS/Tom Brenner

US President Donald Trump says he could sign a long-awaited trade agreement with China.

He has floated the idea of signing it in Iowa, a farming state that has been hard hit by a 16-month trade war with Beijing.

The state is also crucial to his re-election bid in 2020.

The trade dispute has slashed exports of US soybeans and other crops.

Trump and China's President Xi Jinping had been due to sign a deal at an APEC meeting in Chile later this month but the host nation has now cancelled it.

"We're moving along with a deal with China. China wants to make the deal very much. And we have a good relationship," Trump said on Friday.

The trade war began when Trump slapped tariffs on Chinese goods, alleging that Beijing promoted unfair trading practices.

Another round of tariffs is due in December which would hit big spending items for consumers laptops and mobile phones.

Almost all consumers goods in the US are now affected including food, clothes and shoes.