How Well is the US Doing on Trump's Deal With China?
The PIIE Charts, originally published on May 18, 2020, track China’s monthly purchases of US goods covered by the phase one deal between the United States and China.
- Through September 2020, China's year-to-date total imports of covered products from the United States were $65.9 billion, compared with a prorated year-to-date target of $124.9 billion.
- Over the same period, US exports to China of covered products were $59.1 billion, compared with a year-to-date target of $109.0 billion.
- Through the first nine months of 2020, China's purchases of all covered products were thus only at 54 percent (US exports) or 53 percent (Chinese imports) of their year-to-date targets.
What an Amazing Deal
What a deal, and we still have a mountain of tariffs too, hurting all the manufacturers that import goods.
Tax Foundation Tariff Tracker
The Tax Foundation Tariff Tracker has these interesting stats through September.
- According to the Tax Foundation model, the tariffs imposed so far by the Trump administration would reduce long-run GDP by 0.23 percent ($58.02 billion) and wages by 0.15 percent and eliminate 179,800 full-time equivalent jobs.
- The tariffs are equivalent to one of the largest tax increases in decades (the 17th largest tax increase as a share of GDP since 1940).
- The administration’s outstanding threats to impose additional tariffs would, if acted upon, further reduce GDP by 0.24 percent, wages by 0.17 percent, and employment by [another] 184,200 full-time equivalent jobs.
Trade Wars Good and Easy to Win
Balance the Budget
Shortly before his inauguration, Trump told Sean Hannity on Fox News that he would “balance the budget very quickly … over a five-year period. And I don’t know, maybe I could even surprise you.”
Also recall Trump's claim of using tariffs to pay down the national debt.
"..Because of Tariffs we will be able to start paying down large amounts of the $21 Trillion in debt that has been accumulated, much by the Obama Administration, while at the same time reducing taxes for our people. At minimum, we will make much better Trade Deals for our country!"
Trump is totally clueless about trade and deficits.
Trump tried to balance the trade deficit with tariffs. It was a fool's mission as explained in Balance of Trade vs Gold Window
Also consider Trump's Unwinnable Trade War: Gold Explains Why
Will Biden Be Better?
For discussion, please see How Will Biden Differ From Trump on Trade and China Policy?