US President Donald Trump was unable to achieve his main goal in the trade war with China вЂ” the growth of industrial production writes The Wall Street Journal.
The tariffs helped narrow the US trade deficit with China in 2019, but the US trade deficit reached a record $84 billion that year. American importers switched to cheaper goods from Vietnam, Mexico, and other countries.
The deficit in the balance of trade with China has already returned to the level at which it was at the beginning of Trump's presidency. Industrial production in the US peaked in December 2018, after which the increase has stopped. Still, Trump advisers say the tariffs were able to force China to buy more American goods, which would help rebuild the US manufacturing base.
Experts polled by Bloomberg previously said China is winning the trade war. The country's GDP increased by 3.2 percent in the second quarter compared to the same period last year. The US economy contracted 32.9 percent on an annualized basis. Analysts also point out that it is a matter of time before Chinese tech companies reach the top spots in the world. Attempts by the White House to prevent this have not yet yielded results.
The trade war between the United States and China began in late 2017 with the imposition of duties on some Chinese goods. In January this year, the countries entered into the first phase of the deal. It provided for increased purchases of American goods by China, mainly agricultural. However, its full execution and preparation of the second phase were disrupted due to a sharp decline in global demand amid the crisis. The US has also blamed China for the spread of the coronavirus.