Despite the Phase-1 trade deal between the US and China which is all set to be signed on January 15 with a presumption to ease the tension between the two sides, the US, however, has no plans of lifting the trade tariffs worth about $360 billion, or nearly two-thirds of Chinese imports to the US.
"There are no other oral or written agreements between the United States and China on these matters, and there is no agreement for a future reduction in tariffs," Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer said in a joint statement quoted by International media.
The taxes levied since 2018, have raised the prices for finished products such as baseball hats, luggage, bicycles, TVs, sneakers, and a variety of materials used in the production process used by American manufacturers, as reported by international media.
Trade Tariffs were imposed by the Trump Administration as a negotiation tactic to curb the Chinese intrusion into American markets and to pressurize China to agree to a new trade deal that addresses unfair trade practices, such as intellectual property theft and forced technology transfers. Reportedly, the tariffs have affected the American markets too with manufacturers forced to look for alternative sources raw materials affecting the supply chain and buying from manufacturers of other Asian countries.
Due to the tariff war, US businesses have been affected forcing owners to make decisions about job cuts and raising prices of products. Businesses and investors are wary of making long term investments due to uncertainty around how long the tariffs will be in place, which in turn has potentially affected the US growth. On the other hand, China has experienced the lowest level of economic growth in 2019, slowest in the past twenty-seven years, due to the trade war between two of the world's most powerful economies.
The American markets are hopeful of something substantial to come up from the Phase-1 trade deal which will be signed on January 15, through which China will purchase goods worth USD 200 billion over a span of two years. The phase-1 deal vows to de-escalate the bitter trade war which has been going on between the two countries.
(With ANI inputs)