US and China to sign off Phase 1 agreement in Washington to ease their trade war.
US and China call for a truce after two years of the tit-for-tat strategic trade war on goods worth billions. After a long tussle of sanctions and tariffs between the two major economies of the world, the US and China have decided to allay the blow of their trade war. The US-China trade policy is also a benchmark strategy of US President Donald Trump’s campaign in the upcoming presidential elections.
The trade deal between both the sides will ease the manufacturing slowdown that Beijing has been experiencing in the failed back and forth negotiations with Washington. The Chinese Vice Premier Liu He is in Washington as US President Trump is expected to sign the Phase 1 deal today.
The tariffs will remain and much of the major issues remain unsolved as the Phase 1 agreement will be enforced soon. The Trump administration would want to speed up the negotiations of the next phase as President Trump faces impeachment trials.
The follow-up of the next phase will ease off some of the tariffs as China opens space for the US in its financial sector. Trump is also facing criticism that the US-China trade war will have longer damage to the American economy than what was earlier predicted.
