US-China trade: truce, not peace
Trump Administration's 25% tariffs on US$250 billion of Chinese imports and Beijing's retaliatory tariffs on US goods still remain in place
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US PRESIDENT Donald Trump entered the White House in 2017 pledging to reverse traditional American trade policies, and to place China at the centre of his new mercantilist agenda. That delighted his supporters in the de-industrialised areas on the country who had helped elect him as president but also sent shockwaves among free traders in Washington, including members of his own party, as well as the financial markets.
Three years later, following a 19-month-long trade war between the United States and China, and on the eve of another presidential campaign, the self-proclaimed economic nationalist is expected to run for a second term insisting that he has delivered on his promises to the "forgotten American men and women" while refraining from destabilising the global economy.
Hence Mr Trump can proclaim that the "historic" and "big, beautiful monster" of a trade deal with Beijing amounted to a major victory over a country that he had accused of "stealing" American jobs. The agreement, he will contend, would benefit blue-collar workers in Pennsylvania, Michigan and Ohio, as well as American farmers, demonstrating that his aggressive protectionist approach works, not to mention highlighting the negotiating skills of the master of the Art of the Deal.
