We’ve been covering this news for two years now and the day appears to have arrived. Donald Trump has reached a trade deal with China. And it will Make America Great Again.
The agreement needs to be written up and signed but it’s a big handshake deal in the Oval Office. China is coming around and realizing it needs the US more than the US needs China.
Some are also suggesting that China sees the impeachment issue as a non-starter. And earlier speculation that they might be able to wait Trump out until November 2020 and hope he is replaced by a more friendly Democrat seem like empty rhetoric at this point.
Yes, the left will say China is helping Trump (including electorally). They are but not the way Democrats want you to believe. The Trump Tariffs are bad for China and they needed to make a deal. Democrats will imply some quid pro quo but it’s a cover. The left is ore invested in a political relationship with China than any Republican.
But to the matter of helping Trump win re-election. Part of Phase I of this deal is a handshake agreement. China will triple its agricultural buys. Up to 50 billion in US Farm products over the next two years. As John Hinderaker notes at Powerline,
Trump joked that farmers will need to buy more land and work overtime. That means, I think, that Democrats can say goodbye to hopes that tariffs would be the issue that could win votes in rural America.
Famers and everyone who benefits from the agricultural industry may just want to thank Mr. Trump with their votes.
Hinderaker also adds that “The agreement also opens up China’s financial services markets to American companies, covers currency manipulation, and addresses some aspects of intellectual property and technology transfer agreements. Phase 2 negotiations will begin immediately.”
This is also good news for American business.
And, those new October 15th Tariff increases against China have been canceled.
Today is October 13th.
Any guess why the deal was reached this week?
Phase 2 will begin immediately and I predict will be agreed to before the mid-December Tariff hikes planned for China.
And the smart “people” said tariffs would hurt America.
Here’s some video. We can call it ‘winning!’
Update: China has now requested more negotiations before signing a Phase 1 agreement. Presumably, since it was not even in writing yet they are having second thoughts. The biggest sticking point seems to be the December Tariff hikes. China wants them gone before singing phase I, again still not in writing.
We’ll know how Trump feels about it if we wake up tomorrow and the October hikes that were shelved after a handshake agreement last week go live.
Maybe Trump uses this to get something else in exchange for a preliminary agreement to drop the December Tariff hikes.
And I doubt The Donald sees any of this as a setback. He loves the deal. I know people like that. They are all about the back and forth. They live for this stuff. While we watch and wonder.
Note: An earlier version of this post cited PJMedia. The correct source is Powerline. The link-text has been corrected.