Despite Trump’s tough stance, phase one deal at risk amid global virus spread

When the US economy is taking a hit from the COVID-19, it won’t be easy for the Trump administration to give China some leeway in the phase one trade deal, even though the deal has a clause that both countries can consult in the case of an unforeseeable event. Any delay in China’s plans to purchase goods from the US may seem unacceptable to Trump, who is probably hoping to use the Chinese purchases to score political points in the upcoming election.

Yet, the fact is that the virus may have hit the China-US trade far harder than the trade war, as reflected by the sharp fall in the recent bilateral trade. During the first two months of this year, China’s trade with the US dropped 19.6 percent year-on-year amid disruptions caused by the outbreak.
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