US President Donald Trump speaks after announcing and initial deal with China while meeting the special Envoy and Vice Premier of the People's Republic of China Liu He at the Oval Office of the White House in Washington, DC on October 11, 2019.

As the U.S. and China close in on an interim trade deal that would thaw tensions between the two economic powerhouses, the American Apparel & Footwear Association (AAFA) said it is "incredibly not happy" over the situation.

"We don't see a win for us in this deal," Rick Helfenbein, president and CEO of the trade organization, told CNBC's "Squawk Box" on Monday. "At the end of the day, we hope these tariffs will go away and that will make a difference."

Last month, the U.S. and China reached a truce and started working to finalize a "phase one" trade agreement that includes a pause in tariff escalation and Chinese purchases of U.S. agriculture products.

U.S. Commerce Secretary Wilbur Ross said Sunday that the agreement could be signed by American President Donald Trump and Chinese President Xi Jinping in one of several locations, including Iowa, Alaska, Hawaii or somewhere in China.

The deal was originally supposed to be signed at this month's Asia-Pacific Economic Cooperation summit in Chile, but the event has since been canceled due to protests in the country. The White House said it still plans to ink the deal "within the same time frame."

"On one hand, we're really, really happy everybody's talking," Helfenbein said. "But for our industry, in particular, there's nothing in this deal for us. We're under tariff now. We will remain under tariff."

"We're really glad that the interest rates went down last week because we have to borrow money now to pay for these tariffs," he added, in reference to last month's decision by the U.S. Federal Reserve to cut its benchmark funds rate by 25 basis points.