China and the U.S. have reached a tentative agreement on enforcement of a potential trade agreement between the two nations. White House economic adviser Larry Kudlow said Friday the mechanism blocks Beijing from retaliating if the U.S. implements tariffs on Chinese products because China violated the terms of an eventual agreement.
China targeted U.S. agricultural products such as pork and soybeans as part of its response to the massive list of U.S. tariffs placed on China by the Trump administration. The two sides appear to be inching closer to reach some sort of agreement.
The agreement will not come this month as previously thought. The administration says a summit between the U.S. and China will not happen at the end of March as more work is needed in the negotiations. That meeting appears now more likely in June.
While China may agree to enforcement measures, many market experts caution that China has a history of ignoring previously agreed trade rules.