Trump Can Still Slap Tariffs on China after Signing the Deal, Says Expert

The “Phase One” trade deal, which is expected to be signed on Wednesday by the U.S. and Chinese representatives in Washington, could bar China with a commitment hard to fulfill, says an expert from Asian Trade Centre.

The deal would involve China agreeing to purchase additional U.S. goods and services by at least $200 billion over two years.

 

According to data from the U.S. Census Bureau, China purchases around $186.29 billion of US goods and services in 2017 before the trade war started.

To meet the agreement with the U.S. in the “Phase One” trade deal, China would have to buy a “crazy amount” of U.S. “agricultural goods, machinery especially aircraft and energy products,” stated Deborah Elms, executive director at consultancy Asian Trade Centre.

Elms also added that for some products, Beijing may have to more than double the purchases by reducing tariffs on those imports and stop buying them from other sources.

 

If China fails to meet the conditions given by the U.S., it would allow Washington to increase more tariffs on Chinese products or all sorts of things are also possible when it comes to U.S. President Donald Trump.