WASHINGTON (KELO.com) — Prior to signing the U.S.-China Phase 1 Trade Agreement this morning, President Donald Trump said the accord would have the Chinese purchase so many commodities that farmers “should buy a bigger tractor.”
“President Trump is a showman,” Johnson said at a noon-hour news conference with South Dakota media. “Farmers know how much trouble is around the corner. They aren’t engaged in premature exuberance.”
However, Johnson is glad to see that China is supposed to up their purchase of farm products to $50 billion over the next two years.
“It will take a while to ramp up the purchases,” Johnson said about the Chinese buying more American agricultural products.
Still, he says U.S. tariffs will remain in place on a number of goods and only be reduced if the Chinese comply with the new agreement. There also means within the accord to enforce compliance, according to Johnson.
Even with the good news of at least a partial deal with the Chinese after several years of a trade war, Johnson is still cautious about dealing with the Chinese.
“China is a difficult market to break into,” Johnson said.
On another trade front, Johnson says the U.S. Senate is supposed to take up the passage of the U.S. Mexico Canada Trade Agreement this evening. It would replace the North American Free Trade Agreement approved during the Clinton Administration. The agreement passed the House last month.
