Trump accuses China of false « panic » reaction-diepresse.com
China announced Zölle of 34 percent on US goods. They apply from April 10th. Peking also put eleven US companies on a black list.
According to new US tariffs, China also imposes further surcharges of 34 percent on goods from the United States, which are due to reach from April 10th. In addition, export controls for seven rare earths would be introduced, the Chinese Ministry of Commerce said on Friday. US President Donald Trump accused China of a false « panic » reaction. He wants to negotiate with Vietnam. With his request to Fed boss Jerome Powell, Trump biss on granite for the time being that it was « too early ».
Among the rare earths newly protected by China is the gadolinium used in magnetic resonance imaging and the yttrium used in electrical appliances. In addition, Beijing has put eleven US companies on a black list, which makes it impossible for the companies concerned to continue trading in China or with Chinese companies. As the ministry continued, China also submitted a complaint with the World trade organization (WTO) against the massive US import tariffs on Chinese goods. However, the international organization of the international organization based in Geneva has been blocked for years.
US customs charges against China 54 percent
Trump had imposed new tariffs against China in the amount of 34 percent on Wednesday, and should come into force next Wednesday. Together with previous import fees, the customs surcharges imposed on China since Trump’s office in January. China is the country with which the United States have the greatest trade deficit. Even before the announcement, the USA had occupied 20 percent tariffs from China, the second largest economy in the world.
Beijing had previously reacted to US imports and imposed new tariffs from 10 and 15 percent to a number of agricultural products such as soybeans and millet as well as energy products from the USA. The People’s Republic has now condemned the new US tariffs as « harassment » who « are not in harmony with international trade rules and seriously undermine China’s legitimate rights and interests, » says a statement by the customs commission of the Chinese State Council.
Trump: China is wrong, « panic cannot afford »
From the perspective of US President Trump, China reacted incorrectly to his new tariffs. The government has announced the same high special tariffs of 34 percent on US goods. « China did it wrong, they are panicked-which one thing that they cannot afford, » Trump writes in capital letters in a article on his social media platform.
It was the « perfect time » for an interest reduction, Trump wrote online to Fed boss Powell. This itself should stay out of politics. For the USA, many economists predict an inflation shock for Trump’s politics. And so also Powell on Friday, according to the speech, at a appearance in the US state of Virginia: he expects « higher inflation and slower growth » and increasing unemployment figures. It is also « too early » for the key interest rate reduction required by Trump.
« Although the tariffs will most likely cause at least a temporary increase in inflation, it is also possible that the effects will last longer, » said Powell. Although uncertainty is still great, it is now becoming apparent that the customs increases will be significantly higher than expected.
Course losses worldwide
The financial markets worldwide reacted to the escalation with further price losses. The price slide also continued on the German stock market. The leading index Dax gave up again. On a weekly perspective, the minus added up to 8 percent. At the ATX it was even more on Friday to close the ICT with minus 9.89 percent. That was the greatest percentage loss since February/March 2022.
The head of the Vienna Stock Exchange, Christoph Boschan, moved out to calm down, said the ORF « ZIB » on Friday evening: « The ATX has still been up to ten percent since the beginning of the year. » The strong profits of the last 60 days would be made. « We are at the level of two months ago. » Stefan Bruckbauer, chief economist at Unicredit Bank Austria, said: « Trust is shaken because measures are taken that obviously make no sense economically. » (APA)
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