This archive report was first published on 14 December 2019.
On December 14, 2019, President Trump cited a preliminary agreement with China as evidence that his trade strategy was working. The agreement, which would see the US sharply reduce tariffs on Chinese goods, was hailed by Trump as an 'amazing deal for all.'
However, economists were quick to point out that the agreement did not represent a significant shift in China's purchasing habits, with the country already buying many of the goods mentioned in the agreement.
Trump's trade strategy has been marked by a shift away from multilateralism, which had guided American policy since the end of World War II. Instead, the US has sought to negotiate bilateral trade agreements, using its market power to extract concessions from other countries.
One of the key drivers of this shift has been Trump's 'America First' agenda, which prioritizes American interests above all else. This has led to a more adversarial approach to trade, with the US seeking to use its market power to pressure other countries into making concessions.
However, this approach has also led to concerns about the impact on the global economy. Companies that make goods in China are likely to face pressure to explore other countries, posing disruption to the global supply chain.
