In a surprise move that appears to be a real about-face, Donald Trump announced on Truth that he will immediately suspend for three months, on the day they come into effect, reciprocal tariffs for countries that have expressed their intention to negotiate, while maintaining the basic tariff of 10% for all.
Instead, China was punished for reacting, against which the tycoon increased the rate - with immediate effect - from 104% to 125% after the Dragon had announced, in turn, tariffs of 84% on Made in USA products that start today. Even if - as reported by CNBC, citing sources from the White House - Donald Trump's duties are 145% overall. The 125% reciprocal tariffs announced by the president are in fact added to the 20% duties previously imposed for fentanyl.
Wall Street soars and Asian stock markets continue their rally and rebound in the wake of gains fueled by the 90-day halt. Investors' mood has not been ruined by the entry into force of Beijing's 84% counter-duties on US-made goods, which have not been revised to 105%.
Speaking at the White House, Trump explained that his tactic "worked perhaps more quickly than expected," but admitted that he saw "people a little scared" by the tariffs. And he declared himself ready for "fair agreements with all countries," believing them to be "possible even with the EU." He also said he was convinced that Beijing also wants an agreement but does not know how to proceed, evoking the pride of China and President Xi.
Via libera Ue ai controdazi al 25%: verranno riscossi dal 15 aprile
The president seems to have given in to the growing pressure from Wall Street and Silicon Valley CEOs, his donors and many Republicans, as well as the collapse of the financial markets. Aggravated by the alarm over American bonds, which had raised the question of whether they were still a safe haven. The 90 days will allow negotiations without tariffs sending the markets into a tailspin, even if the clash between the two largest economies in the world, the US and China, continues to weigh heavily.
And yet until Tuesday night, The Donald had flaunted his arrogance, using offensive and contemptuous words at the Grand Old Party dinner to reassure Republicans about the effectiveness of his tariffs: "I assure you that at least 70 countries are calling me to kiss my a... s , dying to reach a deal," he said. "Please, please sir, make a deal. I'll do anything, sir," he continued, imitating a pleading foreign leader. "I know damn well what I'm doing," he then assured, continuing to defend his trade war only to contradict himself the next day. "We don't necessarily want to make a deal with them. We're happy to be here, cashing in our $2 billion a day" from the tariffs, Trump explained, sending yet another message that contrasts with his and his ministers' previous negotiating openings. In fact, according to Politico, many foreign governments that have expressed interest in a dialogue are still waiting for a response.
And Israeli Prime Minister Benyamin Netanyahu himself, the first and only foreign leader he has received so far, came away empty-handed after promising to eliminate his country's trade deficit with the US. The tycoon had even stepped up his offensive, announcing "significant duties" on pharmaceutical products in the near future to bring production back to the US and lower prices: the move would also have negative effects on Italy, which has an important pharmaceutical sector and exports a lot to the US. Trump's speech at the party dinner aimed to defuse the growing internal dispute over tariffs and also over the budget, with fiscal austerity hawks ready to block the Senate bill because of the too small cuts to public spending.
Yesterday, before the turnaround, the president had also tried to reassure Wall Street: "Be calm! Everything will be fine. The US will be bigger and better than ever! This is a great time to buy!!!", he wrote on Truth. In the meantime, his Treasury Secretary, Scott Bessent, had sent two very clear messages. The first is that "Wall Street has gotten richer than ever and can continue to grow and succeed, but for the next four years President Trump's goal is to focus on the real economy. It's Main Street's turn", that is, small investors, small and medium-sized companies. The second is that aligning with China on trade is "like cutting your own throat", that is, shooting yourself in the foot, because Beijing does nothing but "produce and produce" and "flood" global markets by lowering prices. A warning to the EU, which yesterday voted on its countermeasures against Trump's tariff war. But also to Spain, whose Prime Minister Pedro Sánchez is flying to Beijing.
(Online Union)