President Trump has bagged a major trade deal with Mexico and Canada which boosted the market sentiment tremendously although not many positive signals were received from China.
Many experts have speculated that with the latest win, it is quite possible President Trump will press for harder concessions from China. The trade row between the two nations is thus likely to continue for months. Trump has hailed his latest trade deal with neighbors as a significant victory of his hardball strategy to reinvent global commerce.
President told the media, “China has been ripping us for so many years”. Its theft of US intellectual property, discriminatory trade policies and a huge trade deficit of $375 billion has made possible for it to sell more goods like clothes, laptops etc. to US than making vice-versa possible. President also said that China does not want to talk nicely and that the Chinese side is not ready for talks. Thus, he said, it is still not the right time to hold talks. China is hard-pressed after three consecutive rounds of sanctions being imposed on it by US.
President Trump has hailed the successful finalization of the US-Mexico-Canada Agreement (USMCA) as he threatened to pull out from the NAFTA on the pretext that US wants to lower its trade deficits in addition to bringing back the lost jobs to US and finally to protect US Intellectual Property. USMCA prohibits the signatories from signing any trade agreement with a non-market economy primarily aimed at China although the phrase can include many other nations, failing which the US will pull out of the agreement.