Donald Trump the US President said that the much-anticipated trade deal between the US and China could come this week. He had met his trade advisers in and earlier took to Twitter to say the news.
On the back of this news, the stock market in the US hit a record high on the signs of the trade deal coming at last.
According to reports the US has in mind to half the tariff rates on some Chinese goods. Some of the tariff rates had gone up to as high as 25%. In return, China will increase its trade relations with the US by buying agricultural products from the US.
But the so-called First Phase of the trade deal will skip over the much more intense issues between the two countries that triggered the fight like the Chinese government offering subsidies for certain industries.
Nevertheless, it’s a start that was much anticipated by the people around the world. The ongoing trade war between the two largest economies of the world is not good and we are on the path of a global economic slowdown.
All the members of the Chamber of Commerce including Myron Brilliant were happy after the meeting at the White House.
On the back of the positive signs, the stock indexes went up by 1%. A deal would also lower the pressure on Mr. Trump who is facing impeachment issues with the US Congress.
But it seems that a few people expected more out of the first phase of the deal. Jennifer Hillman senior fellow at the Council of Foreign Relations said that the outcomes of the meeting and the decisions of the US government cannot be described as a trade agreement. It is basically a purchase and sale agreement and it has nothing to with the more important concerns for the US and the Chinese trade practices.
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