APPARENTLY embattled by head of the House of Representatives Nancy Pelosi and quite a handsome number of her colleagues, President Donald Trump, nevertheless looks confident despite subpoena to a key aide, of overcoming the problem, and as a first step made a major announcement of ‘détente’ in economic war with China. Most diplomats, and experts on international affairs, agree, that Trump, though in considerable trouble, has far too many tricks in his bag and may keep pulling out surprises to outmaneuver his opponents.
New York Times, reporting the latest developments revealed that the President had reached an interim deal with China that would forestall a tariff increase slated for next week, providing a temporary détente in a prolonged and economically painful trade war. Speaking from the Oval office, Trump, speaking said negotiators had reached a ‘Phase 1’ agreement that would take several weeks to write and that both sides could officially sign by November. If completed, the agreement would provide relief to American farmers and businesses that have been battered by the trade war.
Mr. Trump said the ‘substantial’ agreement would involve China buying $40 billion to $50 billion worth of American agricultural products annually, along with guidelines on how it manages its currency, called Yuan but in local parlance it is named as renminbi. Seen closely, it is a multi-purpose deal, as it would also strengthen Chinese protections for American intellectual property and give financial services companies more access to China’s market, the president said.
In exchange, the United States will not move ahead next week with plans to raise tariffs on $250 billion worth of Chinese goods to 30 percent. The president has not made a final decision on whether to impose an additional round of tariffs on Dec. 15, as he has threatened. Experts view it as a major development in China-American ties, and a major step forward towards keeping the world’s two largest economies at daggers drawn at each other.