Two of the world’s largest economies, the US and China, are unable to reach the proposed “phase one” trade deal at the moment. Both the economies are hesitating to agree on the deal considering the demands of opposite party.
In a recent agriculture purchase deal, China had refused to buy the farms good as per the demand by the US. Donald Trump, President, US, has asked China for making yearly agriculture purchases worth $40 Billion to $50 Billion. China says that the US has increased the purchase size enormously as compared to previous purchases from China. Last year, China bought the US farm goods worth $8.6 Billion. The Trump administration has also demanded that China must announce the purchasing plans and must remain independent of current market conditions as well as ongoing trade war liabilities.
To finalize the phase-one deal, the US has previously planned its first step by applying nearly 15% tariffs on various imported Chinese goods worth $165 Billion. Saying that the US and China are yet discussing phase-one deal goodly, Trump signaled that on Dec. 15, something big could happen regarding trade deals.
Gao Feng, Spokesperson, Commerce Ministry, China, stated that “both the countries inched closer regarding trade. China believes that if phase-one deal is agreed by both the countries, the US will have to lower the tariffs.”
Since rolling back the tariffs on imported Chinese goods has been strongly opposed by the US administration officials, the phase-one deal may take longer to be reached. The officials stated that tariff rollback may transfer the hold of US over trade negotiations. As per the recent reviews collected by CNBC over Sino–US trade war, most of the financial strategists, advisors, and investors are considering the trade as irresolvable, whereas some of them think that phase-one deal may benefit Trump politically as well as will encourage shares to bounce back.
Keenly understanding the world of technology and the capability to play with words, Thomas Cramer holds the position of Senior Content Writer. He writes reports and news of the tech world comprising, but not limited to, launches, upcoming & latest events, updates, releases, and so on in a flabbergasting manner. Being a technology freak, Thomas also puts forth his opinions and reviews about the new devices, gadgets, and other technologies & their implementations. Trekking, hiking, and reading books are a few of the free-time activities of Thomas.