In January 2020, U.S. President Donald Trump and China's President Xi Jinping made a trade deal that will see more American farm products and machinery sold to Chinese customers. On April 6, President Trump gave a qualified endorsement to Beijing's efforts to fulfill the first phase of the said deal.
This is after the president was asked about the measures that the U.S. government has taken to protect the different sectors of the domestic economy from the effects of the coronavirus. Trump said that American farmers could expect some support from agricultural purchases China would make as part of the agreement.
He added that as of April 1, China is buying anywhere from $40 billion to $50 billion of America's agricultural product that would have a massive impact on the farmers of the country.
China trade deal
President Trump stated that he was confident that China would continue with the agreement because he knows that President Xi would honor the deal. Trump has always been vocal about his admiration for the Chinese President since his campaign for the presidency in 2015.
Trump added "In fact, I called up just a little while ago, I said, how are the farmers doing with respect to China, are they buying the product as anticipated? And the answer was 'yeah, I think so', but it wasn't the most positive, but it was starting." However, Trump did not specify whom he had checked with regarding the farmers who are selling products to China.
Also Read: How Taiwan Kept Coronavirus Under Control
Phase one trade deal
President Trump signed an initial trade deal with China last January, bringing the first chapter of a protracted and economically damaging fight with one of the world's largest economies to a close.
The trade deal is intended to open Chinese markets to more American companies to help increase energy and farm exports and to provide greater protection for American technology and trade secrets. China has committed to purchasing an additional $200 billion worth of American goods and services by 2021 and is expected to ease some of the tariffs it has placed on American products.
However, the agreement preserves the bulk of the tariffs that President Trump has placed on $360 billion worth of Chinese goods, and it maintains the threat of additional punishment if Beijing does not live up to the terms of the deal.
In January 2020, President Trump stated at a ceremony at the White House that the step that they took was never taken before with China and that they are looking towards a future of fair and reciprocal trade.
The trade deal is a massive turning point in American trade policy and the types of free-trade agreements that the United States has supported. Rather than lowering tariffs to allow for the flow of goods and services to meet the demands on the market, the deal with China leaves a record level of tariffs in place and forces China to purchase $200 billion worth of specific products until 2022.
Related Article: Spain Passes 10,000 Deaths Due to COVID-19, But Curve is Stabilizing
