Assessing the Impact: U.S.-China Phase 1 Trade Deal in Focus

President Donald Trump directed an assessment of the Phase 1 trade deal's progress, which required China to boost U.S. export purchases by $200 billion. Although tariff concessions were made, the pandemic impacted targets. The agreement also involved commitments on intellectual property, technology transfer, and currency management.

In a move to reassess international trade dynamics, former U.S. President Donald Trump has instructed federal agencies to evaluate China's adherence to the Phase 1 trade deal signed in 2020. The agreement mandated an increase in U.S. exports to China by $200 billion over two years.

The trade deal also led to significant tariff adjustments, with the U.S. halving certain tariff rates and suspending others slated for December 2019. However, a notable portion of tariffs remained unchanged, marking a complex landscape for trade relations amid the pandemic.

Beyond trade figures, the agreement included stricter Chinese commitments on intellectual property rights, technology transfer, and currency manipulation. These measures aim at creating a fairer trading environment, while deviations could trigger tariffs under the deal's enforcement mechanism.

(With inputs from agencies.)