Us China Trade Agreements

In the weeks following the signing of the first phase trade agreement, President Trump focused on ensuring his support for Xi. For weeks, Trump has repeatedly praised Xi`s response to the rapid spread of COVID-19 in China. Trump`s tone only changed when the virus wreaked havoc in the United States. The pact aims to open up Chinese markets to more U.S. companies, increase agricultural and energy exports, and better protect U.S. technology and trade secrets. China has committed to purchase an additional $200 billion in U.S. goods and services by 2021, and is expected to ease some of its tariffs on U.S. products. Since the 1980s, Trump has supported tariffs to reduce the U.S.

trade deficit and encourage domestic production, and said the country was « ripped off » by its trading partners; The imposition of tariffs has become an important part of his presidential campaign. [4] A context of the Council of Foreign Relations stated that while many economists and trade experts did not believe that trade deficits were hurting the economy, others felt that persistent trade deficits were often a problem and that there was a substantial debate about the size of the foreign government trade deficit and the policies to be adopted to reduce it. [5] Almost all economists who responded to the Associated Press and Reuters polls said that Trump`s tariffs would do more harm than good to the U.S. economy,[7] and some economists have argued for alternative ways for the United States to deal with its trade deficit with China. [5] [8] [9] [10] [11] After the agreement of the first phase of a trade agreement in December 2019, Mary E. Lovely of the Peterson Institute for International Economics and a professor at Syracuse University said the ceasefire was « good news » for the U.S. economy, while expressing optimism that the discussions would help address China`s « unfair » intellectual property practices. [324] [325] An analysis by the Peterson Institute for International Economics showed that in January 2018, before the start of the trade war, China imposed uniform tariffs of 8% on average on all its importers. By June 2019, tariffs on U.S.

imports had risen to 20.7%, while tariffs on other countries had fallen to 6.7%. [212] The analysis also showed that average U.S. tariffs on Chinese products rose from 3.1% in 2017 to 24.3% in August 2019. [213] Economists at the financial firm Morgan Stanley expressed concern about the end of the trade war, but warned in June 2019 that this could lead to a recession. [321] Foreign direct investment has slowed worldwide. [243] The trade war has damaged the European economy, particularly Germany, although trade relations between Germany and China, as well as between Germany and the United States, remain good. [244] The Canadian economy is also having a negative impact. [245] As the United States, the United Kingdom, Germany, Japan and South Korea have shown « low production » from 2019. [246] Several Asian governments have put in place stimulus measures to repair the damage caused by the trade war, although economists have said it may not be effective.

[247] The mayors of Davenport and St. Gabriel, who represented cities heavily dependent on the agricultural sector, expressed concern that the trade war would have on their cities. [286] When he supported tariffs as president, he said that China costs the U.S. economy hundreds of billions of dollars a year because of unfair trade practices. After imposing tariffs, he denied engaging in a trade war and said that « the trade war was lost many years ago by the stupid or incompetent people who represented the United States. » He said the U.S. has a trade deficit of $500 billion a year, intellectual property theft (IP)