Trump has announced a 90-day pause of duties, China is an exception
US President Donald Trump has announced a 90-day pause in the application of customs duties, which he announced last week as dozens of countries around the world and called « reciprocal. » Instead, there will be a « significantly reduced reciprocal » duty, causing the most powerful uptake of Wall Street from 2020.
The break is to be explicitly confirmed to the EU. It follows from Trump’s message that the break was motivated by the refusal of a number of countries not to respond to duties, and the block made the first steps towards the opposite. « There will be fair deals for everyone, » Trump said later. « Maybe with China. » « I had to do it » given the situation in the markets, he said, adding again that the reduced duties about those who did not respond (but does not say that the high EU duties will remain).
With his message, Trump actually raises more than the 104 % duties of Beijing this morning. An evaluation of the World Trade Organization tonight indicates that trade between the US and China could decline by 80% as a result of the trade war.
What exactly Trump said
Trump explained his decision at Truta Sauzel by the fact that more than 70 countries turned to him, but given China’s attitude and his disrespect to the world markets, the measure will not be applied to the Asian giant.
According to him, on the basis of this behavior of Beijing, the duties of a total of 121 percent come into force « immediately ». « At one point, we hope in the near future, China will realize that the days of robbery of the US and other countries are no longer sustainable or acceptable. »
One Naum: The other countries kiss my ass to make a deal with them, Trump said
Effects
Technological Nasdaq increased by 10%, Dow Jones – With seven percent. This is the biggest jump since 2020, when the Federal Reserve announced a debt purchase program to maintain markets in the course of the pandemic.
The collapse had also affected oil: on Wednesday morning (east coast) oil prices in the United States had fallen to $ 56 a barrel, the lowest value of over four years. After Trump’s words, they rose to 61 for a barrel.
The Goldman Sachs reduced its likelihood of recession back to 45% after Trump’s course, a drop of 65%, saying that duties remaining in force would still probably lead to a 15% increase in the total rate.
| In fact, a universal 10 percent duty is much closer to Trump’s announced in the US President Campaign when he promised some higher rates for China. |
Markets in Europe have opened at higher levels after losses
Finance Minister Scott Buzant commented on the decision immediately after Trump’s publication, interpreting the pause as a signal that Trade was important for Trump and the president would like to draw up strictly individual transactions with countries wishing to lower barriers.
According to Bunnth, the solution does not explicitly affect China, but « Bad Actors ». At the briefing in which he participated in it, Leevit explained that the media collectively failed to understand « what President Trump is doing here. » « You tried to say that the rest of the world would come closer to China as you actually see the opposite. »
