What does Trump’s tariff for global trade mean?

Donald Trump announced on Wednesday a temporary stop for a period of 90 days from the comprehensive definitions he made on all the main American commercial partners last week, which led to an immediate relief in Wall Street as it retracted the policy that threatened the global trade trade.

At the same time, Trump has strengthened the tariff on China to 125 percent, which increased his trade war with the second largest economy in the world.

the Stop the mutual tariff scheme of Trump He is the latest in a series of rotation and repercussions by the US President in presenting chaotic trade policy since his inauguration in January.

Why Trump stops the definitions?

Width and size Definitions On its main commercial partners, it sparked a global sale in stocks and attracted rare criticism of Trump from Republican lawmakers at Capitol Hill. Many billionaires also criticized billionaires, including some of the largest supporters of the Republican Party.

He explained his decision on Wednesday, Trump pointed to the defeat of the global market, which spanned the sale in the American Treasury, and said that people were getting “Yippy”. “You must have flexibility,” Trump told reporters.

His decision erupted as the best commercial negotiator, Jameson Jarir, who was attempted to legislators in Capitol Hill. “Wtf, who is responsible?” Stephen Horford, a democratic legislator of Nevada, shouted at Jarir moments after Trump announced his suspension. Jarir replied, “The President of the United States is responsible.”

What definitions remain?

The United States now has a 10 percent basic tariff for imports from all countries, including the European Union, with exemptions for chips, copper, wood, pharmaceutical preparations, alloys, energy and minerals that are not present in the United States.

Cars and auto parts also smuggled 10 percent tax – but they remain subject to a 25 percent separate tariff that Trump presented last month.

Mexico and Canada avoided the worst mutual tariff system, but Washington was applying the 25 percent customs tariff to all imports from its neighbors who did not abide by the terms of the 2020 free trade deal, USMCA.

The White House confirmed on Wednesday that the 25 percent tariff will remain in place.

The 25 percent fees will remain on all imports of steel and aluminum in the United States, and investigations may continue to lead to customs tariffs on copper and wood.

The president may also follow his pledges to provide a tariff on pharmaceutical chips and preparations.

Will the “mutual” definitions come back?

Trump said that more than 70 countries were lining up to photographing agreements with Washington.

To avoid the scenario in which the drawings appeared in 90 days, the White House will look at cutting fast deals on the suspended “mutual” definitions, including in intense countries in manufacturing such as Japan, South Korea, Vietnam and Cambodia.

Al -Renison, the former UK’s Ministry of Commerce, now in the SEC Newgate consultations, that due to the challenge of managing many negotiations simultaneously, the fastest climbing is the shift from comprehensive definitions to more targeted sectoral duties and product exemptions.

“Trump can stay away from imposing a comprehensive tariff for each country separately to a system that depends on the duties of the product, which can be more manageable for manufacturers and consumption of unfair commercial barriers on certain products.”

Why did Trump not reduce the definitions of China?

Trump raised the fees on China from 104 percent to 125 percent, even when he reduced them in other countries. The move came after Beijing launched the duties of revenge on the United States earlier on Wednesday in response to a previous increase by Washington.

Treasury Secretary Scott Bessin blamed China for the revenge definitions. “As I said to everyone a week ago in this particular place,” you will not be divided, and you will be rewarded. ”

While many countries have contacted the White House for commercial conversations, The United States and China They had no negotiations.

The president said he did not expect more increases in the rate of tariffs on China, adding that he expected countries at some point to reach an agreement.

But Beijing told the Trump administration that it sees the definitions as bullying tactics and that it will not be strengthened through the actions of the American president.

While Trump suggested that President Xi Jinping agreed to talk to him at some point, the Chinese leader is unlikely to agree to an invitation – not to mention a meeting – unless officials come out for the first time in the features of a deal that would make the discussions more political feasible for XI at home.

Has the World Trade War ended?

Economists warn that the disturbances that were already created by Trump’s warring approach to customs tariffs will have negative effects as a result of uncertainty and lack of confidence in American trade relations.

Nicolo Tambeiri, of the Center for Comprehensive Trade Policy at the University of Sussex, said that uncertainty has retracted investment as companies adopted the parking lot and vision before determining how to set their supply chains.

He said: “Literature (academic) indicates that the effects of uncertainty can be bad such as customs tariffs, and there is a great deal of uncertainty here. So even if Trump is dealing to avoid the effects of definitions today, it may change his opinion tomorrow.”

Market investors may also adopt a waiting and vision strategy before assuming that the disturbances have ended.

Stephen Abrahams, head of the investment strategy in the US capital markets in Santander, warned that without further clarity, investors may decide to retreat for the next 90 days instead of jumping to the market.

He said, “We have seen” the day of liberation “one. Without clarity, some may invest, despite the possibility of” Tahrir’s Day “, two, but many will not do that.

Additional reports from Will Schmidt in New York