Love him or hate him, there is no doubt that Donald Trump has a knack of delivering what many people believed was undeliverable. While he stands on the verge of a historic summit with North Korea, which could denuclearise the Korean peninsula, there has also been great progress in Chinese trade talks. In his now all-too-familiar social media communication style, Donald Trump has been posting extremely positive notes from ongoing trade negotiations. So, what is going on behind-the-scenes?
Trade tariffs
At 12:01 AM on Saturday, 23 February 2019 plans to ramp up tariffs on Chinese goods worth $200 billion were cancelled. The threat of increasing tariffs from 10% to 25% was taken off the table amid rumours of a breakthrough in Chinese/US trade talks. This is a perfect example of how behind closed doors politics can be very different to the mudslinging condescending headline grabbing comments in the public arena.
When Donald Trump announced plans to significantly increase tariffs on Chinese goods imported into the US there were concerns of a long-term trade war which would impact the worldwide economy. However, the idea that “America comes first” has been central to Donald Trump’s economic policies since he took root at the White House.
When might a trade deal be signed?
A 90 day deadline during which both parties were given time to agree a trade deal runs out on 1 March 2019. There is intense speculation that a deal will be in place before the deadline with a further summit in March which will herald the public signing of the biggest trade deal in the world. Let’s remember, China and the US dominate the worldwide economy, they are powerhouses and an agreement which would pave the way for reduced tariffs/zero tariffs is quite literally a game changer.
Even during these times of significant political progress by Donald Trump’s administration, some of the press have been focusing more on internal disagreements. At the end of the day, even many of Donald Trump’s back-office questioned his strategies and aggressive moves in the past. The proof will certainly be in the pudding, assuming the Chinese trade deal is signed, and many of those who doubted the teflon president may need to swallow their pride and admit, he got it right?
What next for Donald Trump?
Who would have thought, on 26 February 2019 Donald Trump stand on the verge of signing a peace deal with North Korea and a trade deal with China – predominantly on U.S.-led terms. Many have questioned his often aggressive strategy and his unhelpful public outbursts but they appear to have played a role in his ongoing success.
Brexit and a potential US trade deal with the UK are big news in the UK but not necessarily top of the list of things to do for the Trump administration. The UK has enjoyed a close relationship with the US although there are concerns that Donald Trump could use his significant influence to negotiate a potentially lopsided deal in his favour. When the UK finally leaves the European Union it will be important to get trade agreements in place as soon as possible.
Don’t expect Donald Trump to offer any favours to the UK, as he has said on numerous occasions, the US simply comes first.