Washington lowers duties to encourage dialogue with partners, but raises the rates against China at 125
A turning point came from Washington. Donald Trump has announced a 90 -day tariff break for at least 75 countries, while introducing a 10%general duty. However, I will be a remarkable exception: that of China. The American president has in fact further increased the rates in Beijing, bringing them to 125%.
“Considering the lack of respect demonstrated by China against the world markets, the customs tariff applied to China by the United States of America to 125%, with immediate effect. At a certain point, hopefully in the near future, China will realize that the times in which the United States continued and other countries are no longer sustainable or acceptable,” wrote the American president on Truth. “On the contrary, given that over 75 countries have convened representatives of the United States, including the Departments of Commerce, Treasury and Austr, to negotiate a solution to the questions under discussion relating to trade, commercial barriers, customs rates, currency manipulation and non -monetary rates, and that these countries, on my strong suggestion, have in no way reacted against the United States, I authorize a pause of 90 days and a substantial customs rate substantially reduced by 10% during this period, also with immediate effect, “he added.
Shortly after Trump’s announcement, the White House has confirmed that the “break” will be maintained until negotiations with the various countries are in progress. Well, what is the president’s move to? Certainly some divisions within the administration may have had a weight. If Peter Navarro is historically a proponent of hard and pure protectionism, Elon Musk has instead invoked Liberoscambist policies, also entering into conflict with Navarro himself. Another position is that embodied by the Treasury Secretary, Scott Beesent, and the economic councilor, Stephen Miran: for both, duties are a tool for negotiating pressure. A vision, this, to which Trump has always shown himself rather close.
Moreover, the turning point announced a little confirms that, for the tenant of the White House, the rates have a negotiating purpose: at least as regards the main commercial partners and allies. Totally different speech is valid for China, which Washington considers its own systemic rival. In this respect, Trump, through the pressure of duties, not only aims to counter commercial imbalances. It also aims, if not above all, to create fractures between Beijing and Washington’s commercial partners. The first wave of mutual rates, now reduced to the minimum rate, could have been a warning blow with the specific purpose of isolating the People’s Republic from an economic and geopolitical point of view. This is the thesis, for example, of Beesent. “This was his strategy from the beginning,” said the Treasury Secretary, referring to Trump. “It could even be said that he pushed China into a bad position,” he added. On the other hand, it seems that the White House is aiming to carry out a policy of misunderstanding of the US economy from the Chinese one.
In short, if it is true that a debate is probably being recording within the American administration, it is equally true that the turn of the duties could have a strategic sense. The main objective for Trump remains to relaunch the American manufacture, reduce the debt, stem Beijing and preserve the dominance of the dollar. The White House does not need perennial rates. If anything, it wants to radically renegotiate the economic and safety system that the United States have been the pivot in the last 70 years. The picture is complex and the challenges are manifold. The game, be careful, is only at the beginning. But the worst error that could be made is to believe that Trump is moving attempts.
