January 29th local time, U.S. White House spokesman Pusaki said at a White House briefing that the Biden administration will review all the national security measures implemented by former President Trump, including the first phase of the Sino-US trade agreement signed in January 2020, and will reconsider its relations with China.
We will coordinate with allies and partners to work to effectively address this issue.”
At the meeting, Pusaki refused to answer whether the current government believes that the trade agreement with China is still valid.
“All the initiatives implemented by the previous administration are still under review because it is about the national security of the United States, so I can’t assume that things will progress,” Psaki said.
Earlier, Biden-nominated Treasury Secretary Yellen also promised to conduct a comprehensive assessment of the first phase of the Sino-US trade agreement, and said that the United States would work more closely with its allies.
Reuters quoted U.S. government sources as saying that the Biden administration will suspend the U.S. tariffs on Chinese goods during the evaluation period until the comprehensive assessment is completed and the United States finds the best way to unite with other countries to decide what changes it should make.
Reuters previously quoted data from the non-governmental organization National Committee on Trade between the United States and China (USCBC) that Trump’s trade war with China has caused 245,000 U.S. jobs to be lost.
If both sides are willing to gradually cut tariffs and work together to promote economic growth, by 2025 It is expected to increase 145,000 jobs.
The research report found that if the world’s two largest economies are completely decoupled economically, it may reduce U.S.
GDP by $1.6 trillion over the next five years, resulting in a 732,000 job loss in the United States in 2022.
“As far as tariffs are concerned, it is important to understand the economic costs of making choices,” USCBC Chairman Craig Allen said at a press conference.
The Brookings Institution, a famous American think tank, wrote in his article “Pain is greater than harvest: How the Sino-US trade war hurts the United States”, “Trump claimed that ‘trade wars are good and easy to win’, but it has proved that without solving the fundamental economic problems, the trade war has seriously damaged the United States’s economy.
The bad influence of economy even goes beyond economics.
The article pointed out that under the influence of the trade war, the economic growth of the United States has slowed down, corporate investment has frozen, and the employment rate has declined.
Across the United States, farmers went bankrupt, and manufacturing and freight industry reached the lowest level since the last recession.
The trade war has caused economic pain to both China and the United States, and led to the diversion of trade flows from China and the United States.
As of press time, the number of COVID-19 deaths in the United States has reached nearly 437,000.
The coronavirus pandemic has caused the U.S. economy to be in its worst state since the Great Depression, which is the most urgent and realistic problem in the United States.
As the Brookings Institution article concludes by asking, is the economic cost of the United States to implement trade sanctions worth billions of dollars of depreciation? Is it worth losing hundreds of thousands of jobs?
Is it worth the stagnation of American manufacturing and the destructive impact of American farmers? The United States should think about it.
