U.S. tariffs of 25 percent on $250 billion worth of Chinese goods previously imported remain immediately unchanged. These could be withdrawn as part of a Phase 2 trade negotiation, U.S. Treasury Secretary Steven Mnuchin said Wednesday. The promised reforms are already in place, but making them responsible for an agreement with the United States may increase their urgency on the national territory. The partial peace reached on Wednesday could restore some confidence and Chinese purchases will help some sectors of the U.S. economy, but the pact preserves the bulk of tariffs on goods from China worth $360 billion. Government officials said they would not cancel these rights until countries reach a Phase 2 agreement. Continued pressures in relations could prompt U.S. companies to spend less in China and vice versa. Trump has encouraged the signing of trade as a way to bring economic justice to American workers, whom he claims have been betrayed by previous governments and their trade policies. President Trump`s long-awaited trade deal with China involves some significant changes in economic relations between the world`s largest economies. I hope that he will not derail the agreement at such an early stage.
The Phase 1 trade agreement between the United States and China clearly does not meet wto conditions. While it states that „purchases at market prices are made on the basis of trade considerations,“ Article 6.2 of the U.S.-China Phase 1 trade agreement makes it very clear that china`s import expansion will only affect U.S. exports. In his State of the Union address on February 5 on February 2, he positioned the trade deal as a victory over China`s massive theft of American jobs. One of the most important issues related to the negotiations with China was how an agreement would be implemented. After watching previous deals with China fail to deliver on their promises, many U.S. experts and leaders were skeptical that the Trump administration could get China to live up to the commitments it has made. The current collapse of U.S. farm net income (cash and government payments). B analyzed by economists at the University of Minnesota Extension Service, is four years before the start of Chinese customs clearing.
The average net income of Minnesota farms in 2018 was $US 26,055. In other words, for half of Minnesota farms, net income from farming in 2019 barely exceeded the federal poverty line of US$25,750 for a family of four. Trump`s „easy to win“ trade war has exacerbated a collapse in net farm income that began in 2013. While trade deals are ongoing, this one is remarkably one-sided, with China making most of the commitments. The 86-page agreement facilitates criminal proceedings in China against those accused of stealing trade secrets. It contains provisions to prevent Chinese government officials from applying administrative and regulatory procedures to detect foreign companies` trade secrets and pass this information into the hands of Chinese competitors. Vetter said the deal is surprisingly reciprocal in this area and that it gives concessions to China to ensure its exports to the U.S. are treated more fairly. Derek Scissors, a China specialist at the American Enterprise Institute, said the trade war has already brought Trump an advantage, even though he has not forced Beijing to make big changes to its economic policy: Trump`s tariffs have reduced Chinese exports to the United States and reduced America`s trade deficit with China. .