ETV Bharat / business

Trump refuses to roll back tariff despite Ph-1 of trade deal with China

During a historic signing ceremony at the White House, Trump said he will roll back the tariffs only if the second phase of the trade deal is signed between the two economic giants.

Trump refuses

Trump refuses

By

Published : Jan 16, 2020, 12:59 PM IST

Washington: US President Donald Trump on Wednesday refused to roll back the massive tariff imposed on import of Chinese goods despite having succeeded to sign the first phase of a trade deal with China.

During a historic signing ceremony at the White House, Trump said he will roll back the tariffs only if the second phase of the trade deal is signed between the two economic giants.

The trade deal, considered as a major political and diplomatic victory for President Trump, came on a day when the House voted to sent his impeachment trial to the Senate. Trump has used tariff as leverage in trade talks with major economic powers of the world, mainly China.

US- China signs first phase of the Trade Deal

Trump asserted that he will continue with his policies on tariffs.

"We are leaving tariffs on which people are shocked but it's great but I will agree to take those tariffs off if we are able to do phase 2. In other words, we are negotiating with the tariffs," Trump told the audience, which besides his cabinet colleagues and lawmakers included who's who of the American corporate sector.

"We have 25 per cent on USD 250 billion worth of goods and then we are bringing the 10 per cent down to 7.5 per cent on USD 300 billion worth of goods plus," he said.

"So I am leaving them on because otherwise, we have no courts to negotiate with than negotiating with (Chinese Vice Premier) Liu He, is very tough but they will all come off as soon as we finish phase 2 and that will be something that some people on Wall Street will love but from what I see they love this deal the way it is now,” Trump said.

Describing the trade deal as more than an agreement, he said: "This marks a sea change in international trade".

"At long last, Americans have a government that puts them first at the negotiating table 1st in trade, first in every deal, every decision and every action we take a long with incredible enforceability," he said.

"As we move on to phase 2, I look forward to continuing to forge a future of greater harmony, prosperity and really commerce, commerce and far beyond commerce between the United States and China," said the US President.

"This is something that far beyond even this deal it is going to lead to an even stronger world because we now have -- we now have a big investment in each other and in getting along with each other and this deal is phase one," he said.

Trump said there will be no phase 3.

"This is something that is going to be so special however to our manufacturers, our farmers, our bankers, our service people," he said.

The first phase of the trade deal signed by the US with China marked the conclusion of more than a year of tough negotiations including several months of suspension of talks between the two largest economies of the world.

The first phase of the trade deal includes Intellection Property (IP) Protection and Enforcement, ending forced technology transfer, a dramatic expansion of American agriculture, removing barriers to American financial services, ending currency manipulation, rebalancing the US-China trade relationship and effective dispute resolution.

Read more: Budget Session of Parliament to commence on Jan 31

Washington: US President Donald Trump on Wednesday refused to roll back the massive tariff imposed on import of Chinese goods despite having succeeded to sign the first phase of a trade deal with China.

During a historic signing ceremony at the White House, Trump said he will roll back the tariffs only if the second phase of the trade deal is signed between the two economic giants.

The trade deal, considered as a major political and diplomatic victory for President Trump, came on a day when the House voted to sent his impeachment trial to the Senate. Trump has used tariff as leverage in trade talks with major economic powers of the world, mainly China.

US- China signs first phase of the Trade Deal

Trump asserted that he will continue with his policies on tariffs.

"We are leaving tariffs on which people are shocked but it's great but I will agree to take those tariffs off if we are able to do phase 2. In other words, we are negotiating with the tariffs," Trump told the audience, which besides his cabinet colleagues and lawmakers included who's who of the American corporate sector.

"We have 25 per cent on USD 250 billion worth of goods and then we are bringing the 10 per cent down to 7.5 per cent on USD 300 billion worth of goods plus," he said.

"So I am leaving them on because otherwise, we have no courts to negotiate with than negotiating with (Chinese Vice Premier) Liu He, is very tough but they will all come off as soon as we finish phase 2 and that will be something that some people on Wall Street will love but from what I see they love this deal the way it is now,” Trump said.

Describing the trade deal as more than an agreement, he said: "This marks a sea change in international trade".

"At long last, Americans have a government that puts them first at the negotiating table 1st in trade, first in every deal, every decision and every action we take a long with incredible enforceability," he said.

"As we move on to phase 2, I look forward to continuing to forge a future of greater harmony, prosperity and really commerce, commerce and far beyond commerce between the United States and China," said the US President.

"This is something that far beyond even this deal it is going to lead to an even stronger world because we now have -- we now have a big investment in each other and in getting along with each other and this deal is phase one," he said.

Trump said there will be no phase 3.

"This is something that is going to be so special however to our manufacturers, our farmers, our bankers, our service people," he said.

The first phase of the trade deal signed by the US with China marked the conclusion of more than a year of tough negotiations including several months of suspension of talks between the two largest economies of the world.

The first phase of the trade deal includes Intellection Property (IP) Protection and Enforcement, ending forced technology transfer, a dramatic expansion of American agriculture, removing barriers to American financial services, ending currency manipulation, rebalancing the US-China trade relationship and effective dispute resolution.

Read more: Budget Session of Parliament to commence on Jan 31

Intro:Body:

By K J M Varma

    Beijing, Jan 16 (PTI) China on Thursday said the phase-1 trade deal signed with the US "considerably addressed" mutual concerns and is "good" for both the countries, as the world's two top economic powers move forward to end their bitter two-year tariff war that has rattled markets and weighed on the global economy.

   On Wednesday, China and the US signed the deal in Washington, raising hopes of improvement of trade ties between the two countries hit by the tit-for-tat tariff hikes of nearly half-a-trillion dollars worth of products.

   The deal was signed by US President Donald Trump and Chinese Vice Premier and top trade negotiator Liu He at a special ceremony at the White House.

   Briefing the Chinese media after signing the deal, Liu said the phase-1 trade agreement has "considerably addressed the concerns" of both sides.

   It has both economic and political significance with bearing on world peace and prosperity, state-run Xinhua news agency quoted Liu as saying.

   The deal has injected positive energy into the stability and development of the world economy, he said, adding that China's commitments under the deal on intellectual property rights (IPR) protection, technology transfer and financial market opening would also be applied to Beijing's other trading partners.

   China will further deepen domestic reforms and open up wider to the outside world, Liu said.

   Commenting on the state of the Chinese economy, which was on a slowdown due to the trade war, Liu said China's gross domestic product is estimated to record over six per cent for the full year of 2019, which would fulfil the annual growth target between 6 and 6.5 per cent.

   While Trump praised the deal, asserting that it "marks a sea change in international trade", Chinese President Xi Jinping said the agreement "is good for China, for the US and for the whole world".

   In his letter to Trump, that was read out by Liu during the signing ceremony, Xi said, "It (the deal) shows that the two countries have the ability to act on the basis of equality and mutual respect, and work through dialogue and consultation to properly handle and effectively resolve relevant issues."

   In the next step, Xi said, the two sides should implement the deal in real earnest and optimise its positive impact to make greater progress in the bilateral trade ties.

   In an apparent reference to the US ban on Chinese telecom giant Huawei, Xi called on Washington to treat Chinese companies fairly.

   "I hope the US side will treat fairly Chinese companies and their regular trade and investment activities, and give support to the collaboration between enterprises, research institutes, and schools and colleges of the two countries as it will help enhance mutual trust and cooperation between us," he said.

   Significantly the text of Xi's letter was released by the White House and not by the Chinese official media.

   According to analysts, with relentless pro-democracy protests in Hong Kong and increasing strategic competition with the US on many fronts, China has agreed for some intrusive mechanism to enforce the deal. Also much to the chagrin of Beijing, America's 25 per cent tariff on USD 360 billions worth of Chinese products stays.

   Trump launched the trade war with China in 2018, demanding Beijing to reduce the massive trade deficit, which was USD 375.6 billion in 2017.

   Both sides so far have imposed additional tariffs on nearly USD half trillion worth of goods. The US has imposed tariffs on more than USD 360 billions of Chinese goods, and China has retaliated with tariffs on over USD 110 billions of American products.

   The official media hailed the deal as a hard-fought agreement, which should be cherished by both the sides.

   "China and the US eventually signed the phase one trade agreement. The hard-fought agreement should be cherished by both sides," the Global Times said in its editorial on Thursday.

   The editorial noted that though a huge uncertainty remains, which might make it difficult for China and the US to reach a comprehensive trade deal, "the preliminary agreement will enlighten both sides' further efforts".

   Xinhua in its commentary piece said the deal shows that the two sides are looking for "a more reasonable approach" to managing their differences. However, it warned that the deal should only be considered "a good start" to address a dispute that is "long-term, complicated and arduous".

   The People's Daily, the official media of the ruling Communist Party of China, struck a hopeful note, stating that the bilateral trade relationship "is now standing at a new starting point".

   China's "huge demand" means it should have no problem buying an additional USD 200 billions of American goods, which Beijing has committed to buy under the deal.

   The deal is less of an agreement and "more of an MoU with spending targets", Beijing-based current affairs commentator Einar Tangen said.

   "Enforcement will be a major issue, both politically and practically. The reason for the secrecy is revealed because the big numbers have weak enforceability. Trump has defined political transactionalism. Expect China Hawks and Democrats to pounce on this agreement, as far from comprehensive or enforceable" he told PTI.

   Shen Jianguang, chief economist at Chinese fintech giant JD Finance said despite the deal, the road ahead remains full of obstacles.

   "Even if the trade agreement is implemented in the short term, the losses caused by the tariffs that have been imposed are difficult to recover," he was quoted as saying by the Hong Kong-based South China Morning Post.

Conclusion:

For All Latest Updates

TAGGED:

'good' for both sides: China

Copyright © 2024 Ushodaya Enterprises Pvt. Ltd., All Rights Reserved.