AP: US China “Trade War” On Hold

Diplomatic discussions between the United States and China seem to have cooled in recent days.  In a joint statement from the two countries China agreed to “substantially reduce” the trade deficit with the US but did not go so far as granting the $200 billion deficit reduction requested by President Trump.

According to Treasury Secretary Steve Mnuchin, “We are putting the trade war on hold.”

In the report from the Associated Press, the United States “had a record $376 billion deficit with China in the trade of goods; that was the largest by far with any nation.”  The report cites Mnuchin as being positive about the agreement:

“He said they expect to see a big increase — 35 percent to 45 percent this year alone — in U.S. farm sales to China. Mnuchin also forecast a doubling in sales of U.S. energy products to the Chinese market, increasing energy exports by $50 billion to $60 billion in the next three years to five years.”