During last week’s G20 Summit, Donald Trump had a highly anticipated meeting with China’s Xi Jinping. The conference was to be focused on the trade war China and the United States are currently engaged in.
Following the summit, Trump was quick to call the agreement he made with Jinping, “an incredible success.” However, it now looks like China and the United States never reached a long-term deal at all.
Farmers, particularly the soybean farmers who have been hit hardest by the tariffs, were promised relief. Trump tweeted, “Farmers will be a a very BIG and FAST beneficiary of our deal with China. They intend to start purchasing agricultural product immediately.”
Trump also talked about auto tariffs, “China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.”
The issue is, that while China did agree to temporarily remove tariffs on American products, nothing further was promised. Even Trump’s chief advisers were confused about which deals the president was referring to,
Appearing on NPR, key economic confidant, Peter Navarro, could give no details on any trade agreement. When asked about Trump’s claims, director of the National Economic Council, Larry Kudlow, said, “We don’t have a specific agreement on that.”
China has yet to release any kind of statement either on a trade deal or on Trump’s comments. This would be unusual in a case where the two countries came to an agreement.
At this point, it’s fair to wonder if Trump had misunderstood the particulars of the conversation with Jinping. There is also the possibility that Trump is lying about the conversation to paint himself as an ace deal maker while also giving the stock market a bit of a boost.
The tariffs will continue to hurt American workers. While the current “cease fire” is a positive development, no “incredible deal” seems to be in place.