Us Trade Agreement With China

2. On July 6, 2018, the Trump administration imposed its first tariffs on $34 billion worth of Chinese goods. China returned the favour at the same time. The two countries have imposed tariffs until September 2019, together covering more than $450 billion in bilateral trade. The January 2020 agreement applies to U.S. exports of goods and services. Because detailed data on high-frequency trade for services are not available, these commitments are not assessed here. Time will tell whether the innovations in the implementation agreement will be successful where others have failed, and much will depend on China`s willingness to implement Slav agreements and, above all, to implement them. But the key question for the United States – especially today, when the U.S. economy is in its worst state since the Great Depression following the COVID 19 pandemic – is whether the economic cost it paid for these coercive agreements was the billion dollars that lost value, lost hundreds of thousands of jobs , the stagnation of manufacturing in the United States, and the devastating effects of the trade war on American farmers.

Peter Navarro, director of the White House Office of Trade and Manufacturing Policy, said tariffs were “purely defensive measures” to reduce the trade deficit. [56] It says that the cumulative billions of dollars that Americans transfer abroad as a result of annual deficits are then used by these countries to buy U.S. assets, unlike the investment of that money in the United States. these billions of dollars are in the hands of foreigners who can then use them to buy America. [57] “If the government lets the Phase 1 agreement die, it will be difficult to justify the pain caused by the long trade war,” she wrote in an essay this week. Meanwhile, the U.S. trade deficit with China has widened further, reaching a record $419.2 billion in 2018. By 2019, the trade deficit had fallen to $345 billion, which is about the same as in 2016, mainly due to reduced trade flows. It should be noted that while the U.S. deficit with China is shrinking, its total trade deficit is not. Trump`s unilateral tariffs on China have diverted trade flows from China, leading to an increase in the U.S. trade deficit with Europe, Mexico, Japan, South Korea and Taiwan. In a message to Trump, Chinese President Xi Jinping said the agreement was “beneficial to China, the United States and the world.” Xi also said the agreement shows that both countries can find appropriate and effective solutions to problems “on the basis of equality and mutual respect through dialogue and consultation.” The United States and China must resume negotiations on important policies that are not affected by the first phase agreement.

Trump`s trade war has failed to address what really concerns U.S.-China trade relations. It is time for a new approach. Chilean Deputy Trade Minister Rodrigo Yanez told CNBC: “It is very important for Chile that a trade agreement between the United States and China is soon to be signed.” [338] Trump`s agreement is intended to facilitate the identification and punishment of theft and counterfeiting of intellectual property. For example, several provisions relating to the protection of confidential information are added, considered trade secrets and which, according to AMERICAN companies, are not well protected by Chinese law. These safeguards also include “electronic intrusions,” a reference to hacking computer systems. Some countries have benefited economically from the trade war, at least in some sectors, as a result of increased exports to the United States and China, in order to fill the gaps created by the decline in trade between these two economies.