According to three people familiar with the discussions, the talks are constructive and ongoing, as reported by Bloomberg. One of the people said that it raised doubts over how substantive a deal Trump could make with Chinese counterpart Xi Jinping when the two leaders meet later this month on the sidelines of the Group of 20 summit (G20) in Buenos Aires, Argentina. Two other people familiar with the ongoing talks also said that the Chinese offer was a sign of what they characterized as "constructive discussions" between the two sides ahead of the planned G20 meeting between the two leaders.

Treasury Secretary Steven Mnuchin and Xi's main economic emissary, Liu He, spoke last Friday for the first time in months. Since then, lower-level discussions have been held and Larry Kudlow, the head of Trump's National Economic Council, on Tuesday said the two capitals were in touch "at all levels," Bloomberg further reported.

The trade war has already started to affect businesses and the costs of goods in the United States.  From layoffs to higher prices, and food spoiling, Americans have felt the pinch.  Coupled with rising interest rates, the trade war has been a recipe for economic disaster.