Trade war: China, US face tough reality ahead after the pomp of phase one deal signing
- US and Chinese camps send differing signals over prospect of a phase two deal, while many wonder if China can keep to its phase one commitments
- After trade deal, average US tariffs on Chinese goods will be 19 per cent compared to 3 per cent before the trade war, with European Union already voicing fears
A US-China trade deal that had long been in the works was signed with all the pomp we have come to expect from President Donald Trump, and for some the setting was fitting as this has been billed as a victory for style over substance.
While Trump proclaimed it “a momentous step – one that has never been taken before with China”, it had long been clear that this phase one deal would be lightweight in the grand scheme of trade agreements, which often run to thousands of pages compared to just 86 in this case.
After talks dramatically collapsed in April last year, it was determined that the more difficult elements would be shifted into a second phase of negotiations. The document, then, is seen to contain the low-hanging fruit – items both sides could bear to agree on as their broader geopolitical relationship continues to deteriorate.
