This week, the U.S. and China signed the first phase of a new trade deal that will open up Chinese markets to American goods. The eight-part agreement ends a trade war that has concerned markets in both the nations for two years.
CRES Forum Director of Policy and Advocacy Charles Hernick called into the Steve Gruber Show on 1240 WJIM in Lansing, Michigan, and praised the signing of the trade deal.
“I see an opportunity that we can relax some of the tariffs that we’ve needed to put up against China. I’m a free-trade guy and I’ve always believed in free trade, but at the end of the day, China hasn’t been playing by the rules and they took advantage,” said Hernick in response to the deal.
“We need long-term secure markets for U.S. exports, and this trade deal does that. It sets purchasing targets for China. It increases those targets for the next two years, almost doubling them in some cases. So it’s really a good situation, not just for American energy workers, but for farmers, as well,” he added.
When the host asked Hernick about the trade deal as it relates to the state of the wider economy, Hernick was positive about the current outlook.
“People are coming home with more money in their paychecks. There are more opportunities to export our products abroad,” Hernick said. “A lot of folks were fearful that this trade war with China would tip us into a recession—it didn’t. We were able to come out of it ahead and secure some additional opportunities for American workers and businesses.”
Regarding the future of the trade deal, Hernick spoke to the President’s ability to make the unlikely deal happen in the first place.
“I would encourage folks to look past what the critics say and have some faith that enforcement will hold the Chinese to the table the way they were brought to the table—by a strong arm and a hard push by the president,” Hernick said.
You can listen to the complete interview online here.