Donald Trump opens up to "tailor-made" negotiations on tariffs with "nearly 70 countries" queuing to talk, starting with South Korea and Japan. A move that revives stock markets around the world, although the tariffs will remain in force during the negotiations, as the White House has warned. But fears loom over a head-on clash with Beijing, which rejects the economic "bullying" of the US, attacks Vice President JD Vance and responds blow for blow.
"China also wants to make a deal, but they don't know how to get it going. We're waiting for their call. It's going to happen!", wrote the tycoon on Truth, who triggered 50% more duties on the Dragon as he had threatened to do if Beijing did not revoke its retaliatory measures to the first round of US tariffs of 34% (a response that US Treasury Secretary Scott Bessent called "a big mistake"). The increase, which will increase tariffs on some Chinese products up to 104%, will take effect on April 9, when additional duties will come into effect for all other countries in the world.
But Beijing is promising a fight. The Ministry of Commerce has warned that China will never accept the "blackmail nature" of American tariffs and considers the latest threats "one mistake after another". "If the United States continues on its path, then Beijing will fight to the end", it warned. Then came the first harsh direct attack from the mandarin leadership: "This is a typical act of unilateralism, protectionism and economic bullying", accused Chinese Premier Li Qiang, who in a phone call with the President of the EU Council Ursula von der Leyen also assured that Beijing has "sufficient reserve policy tools to fully protect itself from adverse external influences".
Chinese financial authorities, state fund managers and state-linked companies have already begun to support the country's stock markets, while the authorities have allowed the yuan to weaken to make exports more competitive. In short, Beijing does not want to appear weak and bow to its number one adversary, with whom it will be playing out the challenge for global leadership in the coming decades. So much so that it has also heavily attacked Vance for saying that "we borrow money from Chinese farmers to buy the things they produce". A reference to the fact that Beijing holds a large amount of US Treasury bonds, which are a form of debt, and Chinese demand for these bonds helps keep US interest rates low, allowing the United States to borrow more at favorable rates.
"It is surprising and sad to hear such ignorant and rude words from this vice president," commented the spokesperson for the Chinese Foreign Ministry. The game with the EU also appears difficult but not impossible, as Trump has accused it of "ripping off" the US commercially while Washington pays for its defense. Brussels is also preparing counter-duties, but at the same time wants a negotiation and is making proposals, although so far they do not seem sufficient and the tycoon is asking Europe to buy more American energy to rebalance the deficit.
On the other hand, the first negotiations with Israel, Japan and South Korea are promising. Trump trumpeted on Truth "the great call" with the interim president of Seoul and the "likelihood of a great deal for both countries" after having spoken with him "about their huge and unsustainable surplus, tariffs, shipbuilding, large-scale purchase of US LNG, the joint venture in an Alaska pipeline and the payment for our military protection". Their negotiating team is already in flight. It remains to be seen what Trump's real objective is, because any agreements will not generate revenue (to be used for the promised tax cut) nor will they favor the desired reindustrialization of the country by incentivizing foreign companies to produce in the USA.
(Online Union)