The Trump administration marks a turning point in U.S.-China relations. Starting in 2018, the US president launched an 18-month trade war with his Chinese counterpart Xi Jinping, which forced the two leaders into trade talks that led to the signing of the first phase of the U.S.-China trade agreement in January 2020. Until trade tensions are resolved, U.S. businesses are unlikely to suffer until the future, after Trump keeps his promise to liberalize trade. U.S. companies are now launching an expensive project to move supply chains out of China. 7. See US Trade Representative and US Department of Agriculture, Interim Report on the Economic and Trade Agreement between the United States of America and the People`s Republic of China: Agriculture Trade, October 23, 2020. This report contains data on projected U.S. exports – not actual U.S. exports under the legal text of the trade agreement – based on weekly sales data for certain agricultural products reported to the Department of Agriculture.
On Friday, President Trump tempered expectations of a two-stage trade pact with China and said relations between countries had been too damaged by the coronavirus pandemic. However, in the run-up to the U.S. election, evidence indicates that the agreement is not keeping Trump`s promise.1 The latest official data show that China is not up to expectations and is only reaching 53 percent of the expected purchase target by September 2020. Indeed, Chinese imports of U.S. goods are now weaker than before Trump`s trade war with a flash of U.S. tariffs on Chinese goods in 2018. ABOARD AIR FORCE ONE (Reuters) – U.S. President Donald Trump said on Friday he was not considering negotiating a phase 2 trade deal with China because relations between Washington and Beijing were furious over the coronavirus pandemic and other issues. President Donald Trump said a second-phase trade deal with China was not being considered and said relations between Washington and Beijing had deteriorated too much. Details of the basic approach to mapping the 2020 annual targets for trade data are available in Bown (2020).
Other hypotheses relate to the establishment of estimates for 15 different product categories, as the agreement provides only aggregate targets for the four sectors of manufacturing, agriculture, energy and services.