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Phase One With China on Track Despite Pandemic, USTR Says; Trump Says It's Off Track

Both the U.S. and China still plan to meet their commitments under the phase one trade deal despite the economic disruption of the COVID-19 pandemic, U.S. Trade Representative Robert Lighthizer said. During a May 7 conference call, he, Treasury Secretary Steven Mnuchin and China’s Vice Premier Liu He agreed “good progress” is being made by both sides to “make the agreement a success,” USTR said. The officials also discussed measures being taken by the U.S. and China to support their economies during the pandemic and agreed to hold more conference calls on a “regular basis.”

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The next morning, President Donald Trump told interviewers on “Fox and Friends” that he's torn about what to do about the trade deal with China. “Look I’m having a very hard time with China. I made a great trade deal months before this whole thing happened. It was starting to kick in, starting to produce, and then this happens, and it sort of overrides so much,” he said.

China’s Commerce Ministry said both sides agreed during the call to “strengthen macroeconomics and public health cooperation” and create a “favorable atmosphere … for the implementation” of the phase one trade agreement, according to an unofficial translation of a May 7 statement. China also said it agreed to future “communication and coordination.” The ministry did not mention its progress toward its commitments under the deal, including its purchases of U.S. agricultural products, which have been disrupted due to the pandemic response (see 2005040012).