Dimon says US and China will agree on enough to extend trade deal deadline in March - CNBC

J.P. Morgan CEO Jamie Dimon believes the U.S. and China will reach an agreement before the the start of March to extend the trade negotiation deadline.

"I think they'll get enough done – kind of agreements in principle" to extend the deadline, Dimon said on CNBC's "Squawk Box" at the World Economic Forum in Davos, Switzerland on Wednesday. "If you have tariffs put in place on March 1, that would be bad for the global economy."

Trade negotiations between Washington and Beijing have stretched for months amid a tit-for-tat dispute. Both countries have slapped tariffs on billions of dollars worth of each others' goods. The White House put tariffs of 10 percent on $200 billion of Chinese products in September and at the time threatened to increase the levy to 25 percent by the start of 2019.

The two nations late last year agreed to halt additional tariffs as they engage in new trade talks with the goal of reaching an agreement before the March deadline following Trump's meeting with Chinese President Xi Jinping in Argentina.

Should Beijing and Washington fail to agree on a permanent solution, President Donald Trump has said he will reinforce punitive tariffs on roughly half of all Chinese exports to the U.S. Dimon is also optimistic that the two nations will reach a permanent trade deal after working out differences over the enforcement of intellectual property rights and other contentious issues.

"I think what you need to do is get the strategic relation mostly around trade right. And fair. And not just for us, but for the Europeans, for the Japanese," Dimon added. "I think both parties want to do that."

The bank chief's comments from Davos came one day after a source familiar with the Trump administration's trade negotiations told CNBC that a trade planning meeting with Chinese vice ministers had been canceled due to outstanding disagreements between the parties.

White House economic advisor Larry Kudlow later denied that any official meeting had been canceled, telling CNBC on Tuesday that no intermediate meetings had been scheduled other than the visit by Vice Premier Liu next week.

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