Things were looking quite bleak due to the ongoing war between China, and the U.S. A new revelation suggests that the superpowers in the world will be heading for another negotiation in the following month. The most efficient advisor of Donald Trump, Peter Navarro, said that America is not going to back down from the demand that it has made previously. Peter Navarro is also the trade negotiator of the U.S.
According to Navarro, the failed deal has created a roadblock for the two countries, and they have to come up with a pact soon. Navarro recently had an exclusive interview with Yahoo Finance’s “The Final Round.” During the interview, Navarro laid down the foundation about the expectations of the U.S. in the latest trade talks.
According to Navarro, America and China already had a deal. Moreover, both the countries agreed to the 150-page plus agreement concerning the seven distinctive verticals. They would have dealt with every single one of these issues along with enforcement. Moreover, the negotiations were made across 11 different sessions, along with several clauses.
Navarro said that this is the only necessary move that they need to proceed with the deal, referring to a tentative trade deal dating back to May 2019. It was the Chinese government that walked away from the agreement. On the other hand, there are several ways by which the agreement is going to be determinant of how the Chinese would like to proceed.
Currently, it is unclear as to how China would leave the room to carry out renegotiation which this Asian country has dropped for almost three months. Trump also accuses China of renouncing the promises during the last minute. Nevertheless, China said that nothing would be agreed upon unless everything goes as planned.
The perspective of the Chinese government suggests that they can gain something only by achieving something else. China said to the U.S. that it has to remove the additional tariffs which were imposed earlier with the imported goods. The experts then suggested that the Chinese side has been infected with their tariffs concerning the U.S. products, which was deemed as a befitting response.
It seems like Navarro is speaking the exact words that Trump has been speaking for the last couple of months now. Chinese are currently paying the full burden of the existing tariffs as their local exporters have lowered their prices. In addition to this, the fiat currency of China has gone through a significant devaluation of 15%. If Trump wouldn’t have proposed considerable tariffs on the Chinese imports, then it would have led to an increase in price and higher costs for American importers of Chinese goods.