The Looming Showdown: Trump Sets Deadline for China Trade Confrontation
The Ticking Clock on a Global Trade Battle
Deadline for China - Trump sets Peking's deadline for midday - Deadline set for Trump: Respond to Beijing by midday
Donald Trump, the U.S. President, has set China's leadership a deadline to withdrawal the announced 34% tariffs by Tuesday 12:00 PM, or face additional 50% tariffs starting Wednesday. In response, China vowed to match the U.S. at every turn, saying the country would "accompany it to the end."
In a gathering with Israeli Prime Minister Benjamin Netanyahu, Trump made it clear that he would impose these new tariffs on China and additional tariffs on the EU, as part of a large-scale trade package. He's determined to correct perceived trade imbalances and shift production to the U.S.
China's Steadfast Stance and Escalation
Should the U.S. push ahead with these measures, China has pledged to retaliate. The Chinese Commerce Ministry stated firmly that they would "resolutely take countermeasures to protect its own rights and interests," which would increase the total tariffs on U.S. goods to over 100% since Trump took office. This escalation was initiated with initial 20% tariffs on Chinese goods imposed in January 2020, with the new global tariffs including an additional 34%.
Trump categorically rejected a delay on the tariffs, and the discussions about a potential delay were dismissed as "fake news." He's eager for negotiations with other countries, mentioning Japanese Minister Shigeru Ishiba as a potential partner. However, compromise doesn't appear to be Trump's priority, demonstrated during his meeting with Netanyahu, where he responded ambiguously about reductions in tariffs on Israeli products in exchange for lowered trading barriers.
The European Union's Persistent Efforts and the German Economy's Concerns
In contrast to the U.S.'s aggressive approach, the European Union continues to seek negotiations. EU Commission President Ursula von der Leyen announced that the EU is ready to negotiate despite Trump's tariff decisions, but is still preparing possible countermeasures in case talks fail. Imports from European Union countries are facing additional 20% tariffs by the U.S. from Wednesday.
The German economy faces significant export losses to the U.S. if Trump persists with the tariffs. Leading finance minister Joerg Kukies expects German exports to the U.S. to decrease by about 15% if tariffs are maintained.
The Wall Street's Response
Initially, the New York stock market saw sharp fluctuations. However, the Dow Jones Industrial Average eventually stabilized, closing down 0.91% at 37,965.60 points during trading. The S&P 500 fell 0.23%, and the Nasdaq 100 - dominated by large technology stocks - initially fluctuated significantly but rose by 0.19% due to more positive market sentiments.
In conclusion, the escalating trade conflict between the U.S. and China is creating uncertainty and economic hardships. Other countries like the EU may face similar challenges if the U.S. follows through with its tariff threats. While the stock market initially saw turmoil, there remains hope for a potential resolution as trade negotiations continue.
- EC countries, like Germany, are preparing countermeasures due to the threat of additional tariffs from the U.S., as agreed by President Trump, which could potentially impact their exports significantly.
- During a meeting with Israeli Prime Minister Benjamin Netanyahu, President Trump expressed his intentions to impose new tariffs on China and the EU, which may signal a shift in cooperation policy towards more protectionist measures.
- Should tariffs on Chinese goods go into effect as threatened by Trump, the total tariffs on U.S. goods in EC countries could exceed 100%, as China has pledged to retaliate with countermeasures to safeguard its own rights and interests.
