In Major Win, Trump Signs Trade Deal with China
Phase one of the President's trade deal with China was signed at the White House on January 15, 2020. Trump ran for the highest office in the land with the primary goal of making China play fairer with the U.S. when it came to trade. He professed extreme displeasure with Chinese practices and vowed to make changes. Trump did what no U.S. president before him had done by slapping tariffs on Chinese goods. President Trump calculated that China needs the U.S. more than the U.S. needs China and thus would need to come to the table. The trade deal is evidence of the fact that Trump's worldview is correct.
China Has Already Agreed to Major Changes
Phase one of the trade deal is the first step towards reforming the bilateral trade relationship between the two countries. In the trade deal, China has made specific pledges to buy more U.S. goods starting immediately. The biggest winner in the trade deal is the American farmer. In 2017, China bought $24 billion worth of farm products from American farmers. Under the new deal, China has committed to buying over $12 billion of additional products in the first year and nearly $20 billion in the second year. China has also promised to buy more energy and manufactured products from the U.S. in the coming years.
In addition, the trade agreement also gives U.S. companies greater protection from Chinese intellectual property theft and counterfeiting. In addition, American companies would not be forced to sell their technology as a condition for their access to the Chinese market.
For its part, the U.S. will reduce tariffs on $120 billion of Chinese goods in half from 15% to 7.5%. This leaves in place some tariffs that are meant to keep up the pressure on the Chinese to act more fairly when it comes to trade. The other 25% tariffs that Trump imposed on China will remain in place as a means to keep the pressure on in further trade negotiations. There is still more work to be done to achieve an equitable relationship between the U.S. and China and President Trump is committed to fixing this problem.
Understandably, the President can take a victory lap for holding China to account. Trump has taken to Twitter to amplify the benefits of the trade deal for the U.S. and explain how it helps American businesses and farmers. The Democrats had vilified the President and had accused him of recklessness when confronting an adversary. However, they were nowhere to be found when the Vice Premier of China stood next to the President at the White House to sign the trade deal.
Now, there is momentum between the two countries to solve some of the more intractable trade issues that are caused by China's behavior. Now, China realizes that the President is serious about fighting for American interests and will not hesitate to put America first in standing up for the country's interests.
The President Movea Forward with Another Foreign Policy Win
China and the U.S. will now move on to the second phase of the bilateral trade negotiations. President Trump plans to visit China in the near future to continue the great progress that he has already made to reset the relationship between the countries on a more equitable footing. For one, President Trump intends to raise the issue of China's subsidies to its domestic companies, and he intends to keep other tariffs in place until these problems are fixed.
The trade deal is yet another success that the President can point to when he goes in front of the voters this year seeking four more years. President Trump has fulfilled campaign promise after campaign promise and this trade deal ticks one major item off of the list.