Trump hails 'Phase-one' deal with China, says 'much better' than expected

United States President Donald Trump on January 19 hailed 'Phase one' trade deal with China for improving relations between both nations and said that it was 'much better' than he had expected. While addressing a rally in Austin, Texas, Trump reportedly said that deal is an 'incredible success' for entire country as it is much bigger and better than he had ever thought. He furr also praised new chapter in relations with Beijing and called it ' best relationship' that US ever had with China in many years. 

'Phase one' deal which was signed on January 15 marked a truce between US-China trade wars after nearly two years of tensions. According to agreement, China pledged to beef up purchases of US agricultural goods and or exports for two years. A Chinese-state run newspaper also hailed agreement, however, it also warned that it would 't take much to banjax deal' and bring tensions to ahead again. Although Trump has repeatedly touted 'phase one; trade deal as a win for American farmers, who were hit hard by tariff war. 

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As a part of deal, China would purchase $200 billion worth of additional American products over a period of two years. phase one deal signals a de-escalation in a trade war pitting two ecomic giants against each or for nearly two years. However, US has plans of lifting trade tariffs worth about $360 billion, or nearly two-thirds of Chinese imports to US.

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US-China trade war

Trade Tariffs were imposed by Trump Administration as a negotiation tactic to curb Chinese intrusion into American markets and to pressurise China to agree to a new trade deal that addresses unfair trade practices. Reportedly, tariffs have affected American markets too with manufacturers forced to look for alternative sources of raw materials, reby affecting supply chain and buying from manufacturers of or Asian countries. 

Due to tariff war, US businesses have been affected forcing owners to make decisions about job cuts and raising prices of products. Businesses and investors are wary of making long term investments due to uncertainty around how long tariffs will be in place, which in turn has potentially affected US growth. On or hand, China has experienced lowest level of ecomic growth in 2019, slowest in past twenty-seven years, due to trade war between two of world's most powerful ecomies.

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