US President Donald Trump on Wednesday, 15 January, refused to roll back the massive tariff imposed on import of Chinese goods despite having succeeded to sign the first phase of a trade deal with China, PTI reported.
During a historic signing ceremony at the White House, Trump said that he will roll back the tariffs only if the second phase of the trade deal is signed between the two economic giants.
The trade deal, considered as major political and diplomatic victory for President Trump, came on a day when the House voted to sent his impeachment trial to the Senate. Trump has used tariff as a leverage in trade talks with major economic powers of the world, mainly China.
Trump asserted that he will continue with his policies on tariffs.
‘Will Take Tariffs off If Phase 2 Happens’: Trump
“We are leaving tariffs on which people are shocked but it’s great. I will agree to take those tariffs off if we are able to do phase 2. In other words, we are negotiating with the tariffs,” Trump told the audience, which besides his cabinet colleagues and lawmakers included who’s who of the American corporate sector.
"We have 25 per cent on USD 250 billion worth of goods and then we are bringing the 10 per cent down to 7.5 per cent on USD 300 billion worth of goods plus," he said.
"So I am leaving them on because otherwise we have no courts to negotiate with than negotiating with (Chinese Vice Premier) Liu He, is very tough but they will all come off as soon as we finish phase 2 and that will be something that some people on Wall Street will love but from what I see they love this deal the way it is now,” Trump said.
"As we move on to phase 2, I look forward to continuing to forge a future of greater harmony, prosperity and really commerce, commerce and far beyond commerce between the United States and China," said the US President.
"This is something that far beyond even this deal it is going to lead to an even stronger world because we now have- we now have a big investment in each other and in getting along with each other and this deal is phase one," he said.
Trump said there will be no phase 3.
‘Righting the Wrongs of the Past’
Trump said during a White House ceremony that the deal is “righting the wrongs of the past." He promoted the signing as a way of delivering economic justice for American workers and said, "We mark a sea change in international trade" with the signing, AP reported.
Chinese leader Xi Jinping, in a letter to Trump that was read by Beijing’s chief negotiator Liu He, said concluding the first phase of the trade deal was “good for China, the US and for the whole world.”
The first phase of the trade deal includes Intellection Property (IP) Protection and Enforcement, ending forced technology transfer, dramatic expansion of American agriculture, removing barriers to American financial services, ending currency manipulation, re-balancing the US-China trade relationship and effective dispute resolution.
‘Will Bring Benefits to Both the Countries’: Trump
According to AP, the US President said, “Our efforts have yielded a transformative deal that will bring benefits to both countries.”
He further added, ”Keeping these two giant and powerful nations together in harmony is so important for the world" and said "the world is watching today.”
In remarks to an audience of administration officials, lawmakers and business leaders, Trump said before the signing that the “unbelievable deal” would benefit both countries and "lead to even a more stable peace throughout the world.''
“It is imperative that we develop trade and economic rules and practices that allow us both to prosper. The alternative is not acceptable for either of us,” said Trump's chief trade representative, Robert Lighthizer.
His Chinese counterpart said "the world is now at a critical historical crossroads" facing choices of how to promote country-to-country cooperation.
"Cooperation is the only right choice,'' said Liu, the vice premier.
(With inputs from Associated Press, PTI)
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