To no ones surprise, the “deal” is touted by Trump* as historic…blah blah blah. But it doesn’t even address the reasons the Trump* Trade War(r) began in the first place. And now there will be less incentive for China to continue any negotiations. Trump* punted it into the bleachers yet again on a serious issue that actually matters.
The 86-page text does not cover long-standing U.S. concerns about China’s industrial policy, including how to rein in the billions of dollars in government subsidies Beijing bestows upon its state-owned enterprises.
“That’s a giant hole in the phase one deal, and there’s no way to get around it,” said Chad Bown, a senior fellow at the Peterson Institute for International Economics.
Trump himself has begun to lower expectations, saying he’s in no rush, and his top allies are warning the next phase might not conclude until after November’s presidential election. The result is increasing frustration among some American businesses and technology companies who feel Trump is trading away hard-earned leverage in exchange for an agreement that does little to resolve the systemic issues that led the White House to begin imposing tariffs against China two years ago.
Yet, billions in tariffs will remain in place, hurting the economy. The added duties imposed over the past two years — which were meant to bolster domestic manufacturing and punish China — were “approximately 100 percent” borne by American consumers and importers, a paper by three economists recently found.
While the agreement may help Trump score political points to carry into his reelection campaign as evidence of his dealmaking prowess, others argue the main benefit of the first phase of the agreement is simply to unwind the damage the president himself has inflicted.
“The administration has pulled back from escalating the trade war, and I guess that’s a positive thing. But they started this all in the first place,” said Daniel Griswold, a senior research fellow at George Mason University’s Mercatus Center.
“I still don’t think we’re any better off than we were before the Trump administration pursued a trade action against China,” he added.
So, once again, a problem created by Trump* in the first place that has done immeasurable harm to the American farmers and manufactures, is “corrected” and hailed as some sort of win for Trump*, when in reality it does little to help America and Americans. So predictable.
*3rd Impeached President of the United States
