U.S. President Donald Trump did not rule out the termination of the trade deal with China. He is ready to take this step if China fails to meet its obligations due to the worsening global economic situation caused by the COVID-19 pandemic. The American leader made such a statement at a briefing for journalists in the White House.
Asked what the US would do if the deal with Beijing was terminated, he said that “we will do what I can do best”.
Trump did not go into details.
The agreement on the first phase of the trade deal was signed in Washington on January 15. In particular, China agreed to increase purchases of American products by $76.7 billion during the first year and by $123.3 billion during the second year of the agreement. We are talking not only about agricultural products, but also about other American goods. According to Trump, the deal will allow the US to reduce the large deficit in bilateral trade with China.
On April 17, China’s State Statistics Bureau released data on the country’s GDP for the first quarter of this year. Against the background of the COVID-19 pandemic, its volume fell, and it is stronger than some experts predicted – by 6.8% annually. Moreover, the current economic situation, according to calculations of many economists, is comparable to the times when the cultural revolution ended in 1976.
On April 18, Donald Trump personally stated that China will face consequences if the coronavirus is concealed.