WASHINGTON – U.S. President Trump signed his first trade deal with China on Wednesday, ending the first chapter of a long and economically damaging battle with one of the world`s largest economies. An analysis by Moody`s Analytics estimated that in August 2019, 300,000 U.S. jobs were lost or not created as a result of the trade war, including production, storage, distribution and retail.  The United States and China must resume negotiations on important policies that are not affected by the first phase agreement. Trump`s trade war has failed to address what really concerns U.S.-China trade relations. It is time for a new approach. But Mr. Trump has already set a deadline for a new deal after the November election, and there is deep skepticism that the two countries will reach another agreement in the near future. The CEOs of U.S.
steelmakers Nucor Corp, United States Steel Corp, ArcelorMittal SA and Commercial Metals Co have backed all of Trump`s steel rights against China as well as the United Steelworkers Union.      Scott Paul, President of the Associated Alliance for American Manufacturing, also supported tariffs and rejected proposals to cancel them in the face of the coronavirus pandemic.  In 2019, he criticized the stagnation of trade negotiations, saying, “Trump would have tore any Democrat apart for this result.”  President Trump`s long-awaited trade agreement with China involves significant changes in economic relations between the world`s largest economies. To be clear, Chinese leaders bear full responsibility for their ruthless nationalist action along their periphery and their brutal repression in their own country. However, Beijing`s decisions to move in its current direction were made by its confidence in Trump`s narrow focus on trade and its interest in not letting other issues hinder the conclusion of an agreement or derail the implementation of the agreement. The trade agreement includes numerous victories for the U.S. industry, including the opening of the biotech, beef and poultry markets. Banks, insurers, pharmaceutical companies and the energy sector are also the main beneficiaries.
Under the agreement, China has committed to purchase as much as $63.9 billion of U.S. covered goods by the end of 2020 compared to those basic plans for 2017. The definition of the baseline for 2017 based on Chinese import statistics implies a purchase target of $173.1 billion for 2020 (in red in panel a). The definition of the baseline for 2017 based on U.S. export statistics implies a target of $159.0 billion by 2020 (blue in panel a).