Remember the Phase One trade deal between the US & China?
Let's check in with the Peterson Institute for International Economics PIIE US-China Phase One Tracker to see how Trump's trade deal is going.
Phase One Imports and Exports
The Tracker shows that as of March 2020, China’s purchases of all covered products were around 40-46% of their year-to-date targets.
Note the huge difference between what China says it is importing vs what the US says it is exporting.
- China Imports: $5.1 Billion
- US Exports: $3.1 Billion
- China Imports: $14.6 Billion
- US Exports: $10.9 Billion
- China Imports: $0.1 Billion
- US Exports: $0.4 Billion
- China Imports: $7.7 Billion
- US Exports: $7.6 Billion
Two Sets of Numbers
- China says it imported $27.5 Billion.
- The US says it exported $22.0 Billion
The agreement’s Chapter 6, Article 6.2.6 states “Official Chinese trade data and official US trade data shall be used to determine whether this Chapter has been implemented.” One implication is that there are two sets of monthly data to track (Chinese imports and US exports). A second is that there are two different annual, and hence monthly, targets, since the 2017 baseline level of Chinese imports differs from the 2017 baseline level of US exports.
The amazing Trump trade team negotiated those fine stipulations.
Bear in mind that the March numbers are before Covid-19 significantly hit the US, but had already hit China hard.
Trump Tariffs Disrupted Critical Coronavirus Supplies
In addition to the failure of Phase One, please note Tariffs Disrupted Medical Supplies Critical to US Coronavirus Fight.
The US-China trade war has forced US buyers to reduce purchases of medical supplies from China and seek alternative sources. US imports of Chinese medical products covered by the Trump administration’s 25 percent tariffs dropped by 16 percent in 2019 compared with two years earlier.
It feels so unfair on the rest of the world for Trump to have all this winning.
Can’t we spread it around a bit?