President Donald Trump has signed Phase I of a trade agreement with China that delivers a tremendous win for America.
His team of economic warriors are the first and only to take on the Asian power over trade deficits, currency manipulation, and intellectual property theft that has cost American entrepreneurs upwards of $600 billion annually. After nearly two years of tariff escalation, China’s economic output shrunk to a near 30-year low as they quit the trade war.
“I will just say this, the economic burden of these tariffs is falling almost 100 percent on China,” Director of the National Economic Council Larry Kudlow reportedly said. “So, their economy, which has been deteriorating, you can look at any long chart of Chinese investment, retail sales, and so forth, and you see a steady downdraft.”
In the homeland, the Trump Administration’s America First policies have ushered in renewed growth, energy independence, and prosperity that allowed the White House to negotiate from a position of strength and emerge victorious.
“Today, we take a momentous step. Together, we are righting the wrongs of the past,” President Trump said during the signing ceremony. “This is the biggest deal that anyone has ever seen. It’s all a very, very beautiful game of chess, or game of poker, or, I can’t use the word checkers, because it’s far greater than any checker game that I’ve ever seen, but it’s a very beautiful mosaic. It doesn’t get any bigger than this.”
The president’s comments certainly ring true because no other president was bold enough to go toe-to-toe with China. The Obama-Biden administration attempted to drag the country into the one-sided Trans-Pacific Partnership (TPP) agreement that would have allowed China to further increase trade deficits, steal intellectual property, and pilfer off the remnants of the once-powerful American manufacturing base. Phase I reverses the negative trend, and will deliver prompt support for the country’s farmers who were targeted by China.
Kudlow recently pointed out that Phase I will support further U.S. economic growth in 2020 and 2021 by “at least a half a point of additional GDP.” Kudlow added that would “probably translate into another million jobs on top of what we’ve already done.”
The country is already considered to be at full employment due to the fact that there are more available positions than people seeking jobs. The Trump Administration has been pushing policies that provide retraining that can help Americans fill vacancies.
In many ways, the Trump deal is the antithesis of the cowardly TPP multinational deal Obama and Biden were willing to sign. Phase I is roundly lopsided in favor of the U.S.
China has agreed to buy upwards of $50 billion in agricultural goods in what looks like reparations for harming farmers. The communists also agree to buys that include $40 billion in U.S. services, $50 billion in energy, and a whopping $80 billion in products stamped Made in USA. These wins seemed like science fiction consider not long ago when Obama famously mocked Pres. Trump saying manufacturing jobs are not coming back unless he has some sort of “magic wand.”
To say China ran up the white flag of surrender in the trade war would be a gross understatement. They are now on the hook for an additional $200 billion in American-made products over two years and must refrain from intellectual property theft and currency manipulation. Needless to say, Democrats are unhappy Pres. Trump succeeded where their standard-bearer failed.
House Speaker Nancy Pelosi dragged her feet and delayed a vote on the president’s NAFTA replacement, now the USMCA. The agreement improves American manufacturing competitiveness and opened up new markets for the dairy sector, among others. Her Senate counterpart, Minority Leader Chuck Schumer, is already panning the Phase I deal, despite its superior benefits for everyday Americans.
“If I sound frustrated and angry, it’s because I am. President Trump’s ‘phase-one’ trade deal with China is an extreme disappointment,” Schumer tweeted. “He’s conceding our leverage for vague, unenforceable ‘promises’ China never intends to fulfill.”
Ironically, Sen. Schumer vehemently opposed the tariff “leverage” since the beginning of the trade war. He preferred the TPP’s economic surrender instead. But to take his remarks head-on, these are items the U.S. supposedly concedes.
In exchange, the U.S. agrees to reduce but not eliminate tariffs on products made in China. The White House imposed tariffs on upward of $375 billion in new tariffs, and will continue to subject $250 billion in Chinese goods to a 25-percent tariff. The other $125 billion would see reductions to 7.5 percent. China can see further reductions only after a Phase 2 deal has been signed. America’s concessions are basically for President Trump to stop beating the tar out of China.