Phase One Trade-Deal Analysis

President Donald Trump greets Chinese Vice Premier Liu He after signing phase one of the U.S.-China trade agreement in the East Room of the White House, January 15, 2020. (Kevin Lamarque/Reuters)
Trump’s trade team has made a decent deal with the Chinese, but enforcing it could be a problem.

NRPLUS MEMBER ARTICLE P resident Trump held a ceremony on Wednesday with senior officials from the American and Chinese governments to celebrate the signing of a bilateral trade truce. The agreement requires the U.S. to reduce tariffs from 15 percent to 7.5 percent on $120 billion of Chinese imports and refrain from further tariff escalations. In return, the agreement requires China to reform its intellectual-property practices and financial markets and to purchase an additional $200 billion of American goods and services. It’s a political victory for the president, at least on his own terms of narrowing the trade deficit.

Yet as a “phase one” deal


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