US President Donald Trump said on Monday he opposed renegotiating the US-China “Phase 1” trade deal after a Chinese state-run newspaper reported some government advisers in Beijing were urging fresh talks and possibly invalidating the agreement.
The US government expects China to honor its commitments to buy more US goods under a trade deal signed by the world's two largest economies in January despite the fast-spreading coronavirus outbreak, a senior US official said on Thursday.
China is back in the market for US agricultural commodities after issuing a list of products that will be eligible for tariff waivers, according to market sources. US exporters sold at least two sorghum cargoes to China after buyers bid for supplies to be shipped in the first half of the year. Importers also inquired about soybeans on Wednesday, a day after asking about wheat prices in a move that sent Chicago futures rallying.
Chinese state media on Thursday warned against any nitpicking as Beijing portrayed the Phase 1 trade deal with United States and its new commitments to massive purchases of US goods as a boon for China's economy.
The US trade deficit widened sharply in December as slowing global demand and a strong dollar weighed on exports, another sign that economic growth slowed in the fourth quarter. Other data from the Commerce Department on Wednesday showed new orders for US-made goods barely rose in December and business spending on equipment was much weaker than previously thought, pointing to a softening in manufacturing activity.
United States and China are expected to impose fresh tariffs on US$ 16bn of each other's goods on Thursday as their tit-for-tat trade war rages on. The second round of tariffs will see a total of US$ 50bn worth of goods from each side that will now be taxed. Since the opening salvo in July, tensions between the world's two largest economies have escalated, hurting their companies and economies.
Canada began imposing tariffs Sunday on US$12.6 billion in U.S. goods as retaliation for the Trump administration's new taxes on steel and aluminum imported to the United States. Some U.S. products, mostly steel and iron, face 25% tariffs, the same penalty the United States slapped on imported steel at the end of May.
The European Union (EU) has introduced retaliatory tariffs on US goods as a top official launched a fresh attack on President Donald Trump's trade policy. The duties on €2.8bn worth of US goods came into force on Friday. Tariffs have been imposed on products such as bourbon whiskey, motorcycles and orange juice.