Trump Retracts Temporarily From Childish Trade War With China

Mr. Donald Trump seemed to have come out of his childishness, for once, to halt a fresh lot of sanctions on China, a move which is going to help set the first phase of trade deal between the two power world powers.

Agreeing to move ahead to stop an escalating trade war, China will now purchase farms goods and other products from the United States. Trump administration has also agreed to reduce some previous levies. While Trump has termed this deal as a ‘phenomenal ‘move’, everything he does, is nowhere close to showing any kind of mature leadership expected from a powerful nation’s leader.

In an official statement, he has said, that America will continue to use the other sanctions as leverage against China for future negotiations. Some critics maybe right is saying that the deal doesn’t amount to anything more than China agreeing to step up U.S. farm purchases and does not show any kind of long-term economic changes that U.S. officials have said are needed to level the playing field for businesses.

In this first phase of the deal, the U.S. has reportedly canceled plans to impose fresh tariffs on $156 billion in annual imports of Chinese-made goods—including smartphones, toys and consumer electronics—that were set to go into effect this weekend. It is also confirmed that the U.S. will also slash the tariff rate in half on roughly $120 billion of goods affected on Sept. 1, from 15% to 7.5%.

However, machinery, electronics and furniture continues to be under the US tariff control of 25% that amounts to roughly $250 billion in Chinese goods. Currently, China has agreed to increase American agricultural purchases by $32 billion over previous levels over the next two years.

The agriculture community in America has reasons to rejoice and would probably move to vote for Trump in the forthcoming cycle of elections. With China agreeing to buy from American farmers, total farm-product purchases will increase to $40 billion a year.


Economic News Europe, The Latest Economic News

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