U.S. cuts tariffs to 10 percent for 90 days, but increases tariffs to 125 percent for China
- Donald Trump argues that the decrease has been applied to countries that have not responded to the increase in US tariffs and have been willing to negotiate, including the European Union. Trade competition between China and the United States continues to grow.
Donald Trump has announced the new measures hours after the entry into force of the global tariff increase. On Wednesday, Trump proclaimed his policy with pride, saying that states around the world were “licking his ass” trying to negotiate. In general, it has imposed a 10% tariff on the countries of the world for 90 days. It exempts Mexico and Canada.
The announcement comes amid the turbulent context of the last few days. Stock markets around the world fell sharply at the end of last week and earlier this year, several countries declared that they would respond with tariffs to U.S. products, and some Republicans and financiers in the U.S., or Elon Musk himself, were critical of Trump’s policy. According to some media, the main reason for the lower tariffs may be the fear of being damaged by the U.S. Treasury Bond.
Hours before reporting a generalized drop in tariffs, Trump has spread the message “it’s a good time to buy!” on social media. Stock exchanges that have suffered historic losses in the past few days have experienced historic gains in the last few hours.
China, ready to “fight to the end”
Many analysts have pointed out that the main objective of the U.S.-initiated border tax war is China, and now the focus has been on competition between the two countries. Announcing the general decline, Trump has announced that he will once again raise China, leaving it at 125%. The US president blames the increase on China’s position, as the Asian country has raised tariffs on the US by up to 84%.
The Chinese government has declared that it will “endure to the end” the “struggle” that the United States has launched and has accused the Trump administration of “extortion” with tariffs. President Xi Jinping has stated that they will strengthen “strategic ties” with neighboring countries.
What will the European Union do?
"I welcome Trump's announcement to suspend 'reciprocal tariffs'. This is an important step towards stabilizing the global economy,” writes European Commission President Ursula von der Leyen. The United States has reduced its tariffs on the European Union from 20% to 10%.
On Wednesday, the countries of the European Union (except Hungary) agreed to tariffs in response to the United States, which would enter into force on April 15. Von der Leyen has not made it clear whether the European Union will maintain or abandon them.
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Washington, D.C., June 17, 1930. The U.S. Congress passed the Tariff Act. It is also known as the Smoot-Hawley Act because it was promoted by Senator Reed Smoot and Representative Willis Hawley.
The law raised import tax limits for about 900 products by 40% to 60% in order to... [+]
Muga-zergak apirilaren 2tik aurrera ezarriko dira eta altzairuari eta aluminioari ezarritakoei batuko zaizkie. "Gurekin negozioa egiten duten eta gure aberastasuna eskuratzen duten herrialdeei ezarriko dizkiegu", AEBetako presidenteak adierazi duenez.