In a dramatic policy attack, US President Donald Trump announced on Wednesday a temporary stop of 90 days on the newly imposed definitions of most trade partners in the United States, which reduced the rate to 10 % to provide a field of negotiations.
The exception was China, which is now facing a sharp increase in definitions – from 104 % to 125 % amazing, and immediately effective. The move was characterized by a noticeable reflection after less than 24 hours of the age of sharp mutual definitions on the goods from about 90 countries.
Trump justified the aggressive position towards China by referring to “lack of respect” for global markets in the country. “At some point, we hope that China will realize in the near future that the days of tearing the United States of America and other countries are no longer sustainable or acceptable,” he said in a social publication in fact. This announcement came a few hours after China announced a 84 % reprisal tariff for American goods, which escalates from the ongoing trade conflict.
The temporary pause was welcomed by both markets and commercial partners. American stock indicators rose on the news, as Dow Jones rose 2200 points (+5.9 %), and S&P 500 increased by 6.5 %, and the NASDAC has gained more than 8 %.
It was the largest increase in one day in the S&P 500 in five years, providing a temporary postponement of recent market fluctuations.
Treasury Secretary Scott Bessen, who was with Trump, during the announcement, described his strategy “all the time” and confirmed that Trump will “personally participate” in the upcoming negotiations. Trade Minister Howard Lootnick described the announcement of “one of the most unusual positions of his presidency.”
Despite temporary relief, many economists remain careful. Joe Prussuelaas, the chief economist in RSM US, warned, “The economy (the United States) is still likely to fall into stagnation … All this is to postpone what is most likely a series of penal import taxes.”
While the 90 -day window provides hope for diplomatic breakthroughs, the important customs tariff remains on steel, aluminum and cars. There are additional duties on sectors such as wood, pharmaceutical preparations and copper as well, which increases the uncertainty facing global trade partners.
Trump claims that more than 75 countries have contacted US officials to open talks. Whether these negotiations drive fruit or fair tensions will determine the path of global trade in the coming months.
