Trump chicken game on definitions leaves the world’s guesses

Photo of author

By [email protected]


Watch: Is the United States heading to stagnation? Three warning signs to watch

A day before the “mutual” definitions of Donald Trump, the US President seems to be closed in a high -risk chicken game, with a global economy commentator in balance.

Some countries called “the worst criminals” are scrambling to make it nice with the White House to end this game before reaching its destructive peak.

In contrast, China plays a different game, one of revenge and resistance.

Meanwhile, Trump came forward, even when some allies – in Congress and in Wall Street – wondered whether he went away. On Sunday, when he was asked about the level of the fall of the market that he was tolerated with before changing the track, he picked up it “a stupid question.”

Is this all the tactics of negotiations as many investors and politicians hope – or does it play a longer game aimed at restructuring the global economy and the place of America permanently? In this new world, whether the country is an ally or depends on an opponent on whether this nation gives the United States a good deal.

On Monday afternoon, Israeli Prime Minister Benjamin Netanyahu, the first global leader to visit the president since his commercial announcement, tried to play the new Trump game. He pledged that his nation – which was moved for 17 % definitions – will decrease its commercial barriers and move to eliminate trade surplus with the United States.

“We think this is the right thing to do,” he said. “I think Israel can act as a model for many countries that should do the same.”

Other countries seem to follow a similar strategy in the hope of obtaining a positive result.

Japanese Prime Minister Shigro Ishiba contacted Trump on Monday morning, prompting Treasury Secretary Scott Beesen to mention that the United States has started negotiations with the nation to “implement the president’s vision of the new golden age of global trade.”

European Commission President Ursula von der Layen said that Europe is “ready to negotiate” with the United States, as it made a mutual decrease in customs tariffs on industrial goods to scratch – a suggestion that Trump praised during notes in the Oval Office, while he says he is still not enough.

There were no such gestures from China. On Monday morning, the best economic competitor in America announced that it was responding to an additional 34 % Trump tariff by 34 %.

This has led Trump to threaten another 50 % of the American definitions on China if it does not fall on Tuesday.

“China has chosen to isolate itself through revenge and double the previous negative behavior,” Bessent has responded to X.

China’s reaction to Trump’s last step was equally extent.

“We have confirmed more than once that pressure on China or its threat is not a correct way to interact with us,” Leo Bingio, Chinese Embassy, ​​Liu Bingio, told the BBC BS News. “China will firmly protect its rights and legitimate interests.”

Watch: Iran, definitions and hostages – major moments in Trump’s meeting with Netanyahu

Such a series of reactions and revenge against China and the United States seems exactly what investors fear last week, as American stock indicators decreased by two percentages of two numbers.

By Monday, there was an increasing choir of business leaders speaking publicly against the Trump identification plan, including the Moussal Wall Street who were strong general supporters to manage – apparently appeared to obtain the president to retreat by force from Will alone.

Meanwhile, the American markets were preparing to jump in any reason. When a social media post indicated on Monday morning that the president was considering delaying a period of 90 days on a new tariff – it may have been extracted from a misinterpretation of the comments made by Trump’s economic advisor Kevin Haysit on Fox News – US stock indicators rose. The S&P index added $ 2.4 trillion in the market value for about 10 minutes, only until all after the White House denied that the president was considering this step.

Trump closed the door on Monday afternoon, saying he was not “seen” any kind of delay. It was still the utmost speed in customs tariffs.

“We will get one shot in this,” he said.

Perhaps the most message for foreign investors and leaders who hope to obtain a postponement at the last minute – and the slope of exit to stability – came from a senior trade consultant in Trump, Peter Navarro.

“This is not negotiations,” wrote in the Financial Times opinion article published on Monday afternoon. “President Trump is always ready to listen. But for world leaders who, after decades of fraud, suddenly offer a low tariff – they know that: this is just the beginning.”

So, if this is related to the start of the broader systematic change – what is the ultimate goal that is likely to be likely to link the global economy?

One of the theories is that Trump has a plan with many of his leading advisers, “Mar-A-Laggo Accord”, and the final goal of forcing commercial partners in America to weaken the US dollar on the international currency exchange. Such a move would make American exports more affordable for foreign markets and reduce the value of large reserves in China for the American currency.

It is a plan by Trump’s economic advisor, Stephen Miran, although he denied that it was the current administration policy.

This is just one of the potential explanations for the current securities market that Trump intentionally incites – a one who warns many other prominent economists against risk. It is far from the only one.

Since Trump shocked the world with a comprehensive tariff plan, White House officials have launched through the media to preach patience and present a selection of contradictory interpretations in some cases regarding the strategy behind Trump’s global trade war. He does this to increase revenues and protect the American industry – or as a negotiating tool. Definitions are permanent – or they are temporary. They will demand individual deals with other countries – or force some major -party agreements.

While Trump presses the cliff of the tariff on Wednesday without any signs of retreat, it seems ready to keep the world’s guess.



https://ichef.bbci.co.uk/news/1024/branded_news/1f23/live/08e98f20-140d-11f0-b234-07dc7691c360.jpg

Source link

Leave a Comment