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Trump signs off on deal to ease China trade war
Author: Larry Han




President Trump on Thursday approved a proposed U.S.-China trade deal, raising hopes for a possible truce in a 21-month commercial conflict that roiled financial markets, disrupted corporate supply chains and cost taxpayers tens of billions of dollars.
 
At a White House meeting with his top trade advisers, the president signed off on a swap of U.S. tariff reductions in return for China spending $50 billion on U.S. farm goods, tightening its intellectual property protections and opening its financial services markets, according to Michael Pillsbury, a China expert at the Hudson Institute, who says the president briefed him on the deal Thursday.
 
“It’s a breakthrough,” Pillsbury said. “He says it’s historic. I certainly agree with that.”
 
A senior administration official, speaking on the condition of anonymity because the official was not authorized to speak to the media, confirmed Pillsbury’s characterization.
 
The limited accord caps a roller-coaster negotiation that brought the two countries to the brink of success more than once this year, only to see talks stall. Diplomats from the world’s two largest economies have been working against a Sunday deadline, when new U.S. tariffs on $160 billion in Chinese goods were scheduled to take effect.
 
That increase now will not go forward and existing tariffs on $360 billion in Chinese imports will be reduced, according to Pillsbury and others familiar with the arrangement. The deal includes provisions that will penalize the Chinese government if it fails to place the required agricultural orders.

 

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