Trade War Likely to Continue

The 2018 Asia-Pacific Economic Cooperation (APEC) two-day summit ended without a communique, reflecting the ongoing tensions between the United States and China. Vice President Mike Pence said, the U.S., “will not change course until China changes its ways,” and reiterated President Donald Trump’s threats to further increase tariffs on Chinese imports.

Negotiations between the U.S. and China were planned stateside for this week, but China’s top trade negotiator cancelled his plans for the trip. Instead, Trump is expected to meet with Chinese President Xi Jinping in Buenos Aires at the G-20 summit next week.

Despite the apparent setback in negotiations, Trump appears confident, telling reporters, “I think we’ll have a deal. We’ll find out very soon.” Reporting out of China remains skeptical of Trump’s willingness to back down from his position, noting widespread anti-China feelings on both sides of the aisle. Senator Schumer, on Twitter, said, “President Trump should not roll over on trade with China, on protecting intellectual property and letting American firms compete. If we cannot come to an agreement, Trump should not cave to the doves in his Adminstration who’d continue allowing China to steal our jobs & wealth.”

American farmers are feeling the effects of the trade war, with many noting the bailout program did not come close to compensating the losses they faced in the markets. So far, $838 million has been dispersed to farmers, with another $6 billion to be available next month. However, Eric Belasco, an economist at Montana State University told the New York Times, “I don’t think this is going to be enough to compensate them.”