U.S. President Donald Trump called his Phase 1 trade deal with China 'by fa...
WASHINGTON - U.S. President Donald Trump called his Phase 1 trade deal with China “by far, the greatest and biggest deal ever made,” even though nothing was agreed on paper, and most of the tariffs set upon Chinese goods remain in place.
The 15-month trade war between the world’s largest importer and its largest exporter has forced U.S. farmers to leave crops in the field to rot after Chinese buyers disappeared, while lopping an estimated $850 billion off the global economy - an amount equal to the gross domestic product of Switzerland.
The United States is not finding “flexibility or any give on those issues,” said former U.S. Treasury undersecretary of international affairs Nathan Sheets. In 2009, Mohamed El-Erian of Pacific Investment Management used the phrase “the new normal” to describe a post-financial crisis landscape of low growth and low interest rates.
Before the trade war started, the outlook for the global economy was sunny. In late 2017, Trump’s administration was on the cusp of enacting sweeping tax cuts intended to turbocharge business investment and boost U.S. growth, Europe had shaken off its post-crisis doldrums and China was slowing but resilient.
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