InvestorQ : What are the risks of the trade war between the US and China starting all over again? Do you think Trump will risk another trade war?
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What are the risks of the trade war between the US and China starting all over again? Do you think Trump will risk another trade war?

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1 year ago
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Such decisions are more political than economic and you need not be surprised if Trump plans something like this just to divert attention ahead of the US elections. But, clearly the pressure of the COVID-19 is forcing Trump to demand his pound of flesh from China. For example, now Trump has threatened to terminate the Phase-One trade deal with China if China fails to fulfil its promise of buying $200 billion more of American goods and services as committed. Trump said that Xi had only agreed to the deal because Washington imposed tariffs. Trump was pointing out that the Phase 1 deal had ended tariffs of around $155 billion worth of Chinese imports that were set to take effect at the end of 2019 and halved tariffs to 7.5 per cent on another $120 billion in goods. Trump claims that as part of Phase 1 deal, China had pledged to buy, over two years, at least $200 billion more of American goods and services than it did in 2017, including about $40 billion in agricultural goods. China is yet to respond to these threats, although China has proved to be a difficult customer in the past.

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