The President of the United States, Donald Trump, announced on Wednesday a 90 days a pause in the imposition to New tariff For most countries, reducing the rate of “mutual” tariff to 10 percent. However, the definitions of Chinese imports increased to 125 percent, in response to revenge measures from Beijing.
And he admitted that People were screaming “A little” for customs tariffs and was “jumping a little outside the line”, but he repeated his belief that trade agreements will finally be reached with many countries, including China.
China wants to reach an agreement. Just not know very well how to do it (…) President Xi (Jinping) is a proud man (…) they don’t know how to do it, but they will discover it. “
We recommend: Trump increases the definitions to China to 125 %; A pause for other countries.
This decision occurs yet, on April 2, Trump imposed a 10 percent general tariff on all imports and high definitions to 57 countries and regions, causing Great fall In global stock markets and party criticism at the United States Conference.
Treasury Secretary Scott Besent said that the “strategy” of Donald Trump appeared as planned after the president announced a 90 -day stop in his definitions, but it increased the rates of China.
“This was its strategy from the beginning, and it could be said to have led China to a bad situation,” the official told reporters. China is the most unbalanced economy in the history of the modern world and is the largest source of commercial problems in the United States. “
Why stop the definitions?
Treaffp Pause seeks to reduce trade tensions and save time to negotiate bilateral agreements with more than 75 countries that have shown interest in these agreements. The Treasury Secretary, Scott Besent, confirmed that this procedure will allow commercial concerns to address individually.
Despite the general stoppage, China has been excluded and will face a 125 percent tariff in its exports to the United States, due to “Lack of respect” Beijing and previous revenge measures are seen. China has increased the definitions of US imports to 84 percent in response to Trump’s initial measures.
The market reaction was immediate and positive. The actions of fashion companies such as LVMH, KERING, Hermès and Nike have witnessed increases of up to 30 percent. The S& P 500 index increased by 7 percent, Dow Jones won 2,400 points and NASDAQ regained 10 percent.
Also, Apple shares launched 15 percent in the face of Amal A. Exemption of tariffsAlthough the company relies on Chinese manufacturing.
We recommend: China responds to Donald Trump with definitions of 84 %.
However, uncertainty remains. Analysts warn that the 90 -day suspension can lead to New commercial tensions In July if satisfactory agreements are not reached. In addition, the exclusion of China from stopping the tariff and price climbing can increase the complexity of trade relations between the two forces.
In the political field, Trump’s decision has made different reactions. While some praise for this measure as a step towards economic stability, others see it as a tactic to gain time amid the increase in cash and the fluctuation of the market.
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