The trade war with China appears to be winding down as the top two economies have announced Phase I of a colossal deal. Everyday Americans can now expect the usual barrage of skepticism and disinformation from the biased and fake news media. But make no mistake about it, President Donald Trump led the charge and won, big league.
“We made a fantastic deal,” Pres. Trump said.
The wins for Americans are largely based on the fact that China lost this trade war before it even started. The Asian power’s economy has swirled down the toilet since President Trump fired off his first tariff tweet. China’s exports diminished and its import buying power along with it.
Ending the hefty tariffs will likely hand the communists back enough revenue to increase spending on American goods. And, that’s precisely what Phase I of the mega-deal requires.
Fearing the Trump Administration would hit them with yet another round of brutal tariffs, Chinese officials have reportedly agreed to purchase between $40 and $50 billion in American agricultural goods. While critics prefer to point to the tough row U.S. farmers had to hoe during the trade war, the facts are that China has never imported that level of American farm products. Its highest U.S. farm import year was reportedly only $29.4 billion, back in 2012.
Before the Trump Administration took China to task over unfair and illegal trade practices, U.S. farm exports had dropped to $16.3 billion and were continuing to decline. The president’s opponents would be wise to check their powder before criticizing the deal because farm exports were about to bottom out.
The first step in the larger deal also addresses what many consider dealing with one of the worst practices by the rival nation. China demanded that U.S. companies float them a 50-50 partnership to operate in their market. This practice gave the communists access to crucial trade secrets. It was one of the tactics used to siphon off a reported $500 billion in annual intellectual property theft. That unethical practice will come to an end under the new agreement.
There has been some phony criticism of the USMCA deal replacing NAFTA, that the agreement is not enforceable. While the Trump Administration retained the ability to level tariffs against any violations, the U.S.-China deal sets up a base in each country to resolve disputes. That’s a substantial step forward. Of course, President Trump won’t be shy to levy tariffs if American businesses are treated unfairly.
Perhaps the biggest win coming out of the trade war de-escalation is the fact that Trump has beaten China quite badly. Previous administrations were out of their depth and unable to see a path to an American victory. The Obama-Biden approved Trans-Pacific Partnership would have handed the communist global economic supremacy. It’s as if they didn’t even put up a struggle.
President Trump deal isn’t a week 6 road win. This was the Super Bowl of economic fights. Not only did Trump’s “dream team” of financial warriors put together a blueprint to restore the U.S. to the number one economy, but their strategy also remains in place for administrations after 2024 to utilize.
Democrats leaders are already decrying the deal as not addressing things they know the communists would never agree upon. Unfortunately for liberals and their cohorts in the media, America won, and farmers can expect to export more than double or triple the goods they did before the trade war. MAGA!