Yesterday’s day began for the Americans with the call of their president through his post to … relax (be cool !!!!), given the global upheaval that his last week has caused. A few hours later, he suddenly announced –
They will increase (which had imposed a few hours before), after Beijing announced additional retaliation tariffs of 84%. Other countries will see their duties reduce to 10%, he said, at least for the next quarter, giving a necessary but short -term breath to world markets.
Trump’s reasons
CNN explains that either President’s financial team bluffed when it promised that the duties came to stay, or realized that a complete financial collapse was indeed possible.
Finance Minister Scott Bessed said this pause would give time to negotiate new trade agreements, praised the president’s stance to face great financial pressure to force other countries to reach an agreement and insisted that all this was part of his strategy.
Trump: “People … were crazy”
Trump, however, argued that he decided to pause because he thought “people … were crazy”. He also said that he was watching the volatility of the bond market and saw that “last night people were a little anxious”. It is noted that the President’s decision to retreat – “temporarily” as he said – came after days of damage to the Stock Exchange and amid growing warnings that it was going to lead the US economy to a devastating downturn.
‘Fair agreements for all’
Explaining his rationale, the US president said he intends to conclude “fair agreements for all”, including China, which, as he pointed out, wants to reach an agreement, but “he does not know how to say it”.
‘The list of beggars will not be made public’
Trump argued that other countries affected by tariffs approached him, telling reporters: “We have many other countries, as you know, many more than 75, and they all want to come here.” On the night of the previous day, before he even stopped duties, he had stated that he knew what he was doing and how world leaders were “licking” him for an agreement, mocking their appeals. Answering a question from the US NBC network, a White House spokesman said the list of the 75 countries that have approached the US for trade agreements would not be made public.
Duel with China?
At the same time, yesterday’s Trump move seems to be an attempt to limit what was evolving into an unprecedented one between the US and the
More of the world in one between America and China, the French Monde explains.
Beijing, with the imposition of 84% duties as retaliation in the US, seemed to be indifferent to Trump’s warnings, stating that he was ready to fight “to the end”. Subsequently, the American leader, who is suddenly involved in a escalating conflict with his otherwise beloved President Xi Jing, then had to maintain his credibility by fulfilling his threat of imposing a huge tax on imports.
For the time being, China shows confidence that it can face this trade conflict, for which it has been preparing for years. On the other hand, according to CNN it is not clear whether Trump and his officials are fully prepared for the extent of China’s resilience.
The World Trade Organization explained in a statement that the US-China tariff war could reduce the trade of goods between the two economic giants by 80%, pulling down and the rest of the global economy and seriously damaging global economic prospects. “
The position of the EU
This situation creates a dilemma for other US trade partners, including the European Union, which now faces 10% duties (instead of 20%), with the prospect of growth if there is retaliation. For the time being, Trump uses China as an example.
In counterattack the EU
Already on Tuesday, the EU had launched its own counterattack, announcing measures targeted by some American Republican products mainly, as a retaliation for US duties to global steel and aluminum exports. Specifically, it aims to hit US products worth more than 20 billion euros.
EU 2nd response to duties
Beyond that, according to the European Commission, the second phase of the EU’s response – retaliation for customs duties and sweeping “reciprocal duties” announced on April 2 – will be presented at the “beginning of next week”. Yesterday, however, he confirmed that countermeasures could “be suspended at any time”, depending on Donald Trump’s moves.
