Us China Trade Agreement 2020

Regarding the energy purchases in the agreement, Trump told Senator Joni Ernst, the Iowa Republican, who was present, “You got ethanol, so you can`t complain.” For both U.S. export data and Chinese import data, the 2020 supplementary trade targets (in addition to the initial 2017 value) are $12.5 billion (agriculture), $32.9 billion (industrial products) and $18.5 billion (energy). These objectives are contained in Appendix 6.1 of the agreement. Economists at 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] Overall, U.S. energy exports were the worst performers, with less than 40% of previous targets (Chart 4). (Exports of all covered energy products exceeded 2017 levels, as the United States has not been a major exporter of energy products to China in the past.) The fact that commitments are measured in dollars, not volume (for example. B barrels of oil) will discourage the achievement of the target. As a result, lower oil prices in 2020 have made it even more unlikely that China can meet this target. At the international level, the ultimate goal of the Trump administration`s trade war is to change China`s trade policy, while tariff enforcement and the negative economic effects of the trade war have also been criticized.

Among U.S. industries, U.S. companies and agribusinesses opposed the trade war, although most farmers continued to support Trump. Some U.S. politicians disagree with Trump`s tactics, but most agree with the goal of putting pressure on China. [20] At the end of November 2019, none of the leading Democratic presidential candidates said he would eliminate tariffs, including Joe Biden and Elizabeth Warren, both of whom agreed that the United States must deal with what it sees as China`s unfair trade policy. [21] Since the 1980s, President Trump has often supported tariffs to reduce the U.S. trade deficit and encourage domestic production by saying that the country was being “ripped off” by its trading partners, and the imposition of tariffs has been an important part of his presidential campaign. [22] [23] [24] [25] [26] He stated in early 2011 that it was almost impossible for our companies to compete with Chinese companies because China was manipulating their currency.

[27] At the time, Alan Tonelson of the U.S. Business and Industry Council said China`s undervaluation rate was at least 40%, and said tariffs were the only way to fix it: “Nothing else has worked, nothing else will work.” [27] The trade agreement contains numerous victories for the U.S. industry, including the opening up of the biotechnology, beef and poultry markets.