Washington has announced an agreement with Jelly and an investigation into Brasilia’s commercial practices: from Southeast Asia to Latin America, the White House aims to stem the geopolitical influence of Beijing. And (perhaps) the duties on chips and medicines arrive ()
Donald Trump announced that the United States concluded a commercial agreement with Indonesia. The American president reduced the tariff rate to Jernta from 32% to 19%. In turn, the South Asian country has undertaken to buy 50 jets from Boeing and energy for 15 billion dollars, as well as agricultural products for a total value of 4.5 billion. The tenant of the White House has also specified that he had “directly treated” with the Indonesian president, Prabowo Subcino.
Remember that Jerca had been one of the governments that, last week, had received happy duties threats, ready to shoot on the first of August. It is also important to emphasize that the agreement with Indonesia arrived after, in early July, Trump had tightened one with Vietnam. These are two countries that Beijing uses to send their goods in the United States by wandering their tariff barriers: it is therefore not unlikely to believe that the White House is trying to build a sort of “health cord” around China from a commercial point of view.
But Trump keeps an eye on the dragon in Latin America. In fact, Washington has just announced an investigation into Brazil’s “unfair” commercial practices. “On the indication of President Trump, I am starting an investigation pursuant to section 301 on the attacks of Brazil to American social media companies, as well as on other unfair commercial practices that damage companies, workers, farmers and American technological innovators,” said the commercial representative of the United States, Jamieson Greer. “I considered that the tariff and non -tariff barriers of Brazil deserve a thorough investigation and, potentially, a targeted action,” he added.
It was last week, when The White House had sent a letter to Brasilia, threatening it with 50%duties. Officially, Trump is at short irons with Inacio Lula da Silva for the trial to which Jair Bolsonaro is subjected and for American social media who would have been affected by censorship. However, the theme is wider. Washington does not see the fact that, since he returned to power, Lula has further strengthened the bonds of Brazil with China. This contributes to explaining the hard line promoted on Trump trade against Brasilia. Not surprisingly, in recent days, the American president had also threatened to hit the Brics with 10%additional duties.
In all this, Tuesday The American president has announced that it could impose rates on the import of pharmaceutical products already on August 1st. “Probably at the end of the month, we will start with a low rate and we will give the pharmaceutical companies about a year to adapt, and then we will make it much higher,” he said. A similar speech the American president did it for semiconductors. Also in this case, everything must be included in the current geopolitical duel between Washington and Beijing. It is a factor whose importance should be urgently understood by European negotiators. In the negotiations with Brussels, Trump aims to ensure that the EU to his economic-political relations with the People’s Republic. Either the Europeans understand him quickly or the negotiations are seriously risking to shipwreck. The EU Commissioner to Commerce, Maros Sefcovic, should be kept in mind, who is expected in Washington in the next few hours.
