US-China trade war affects all countries and the world is watching as Trump appears to soften his stand on Chinese tariffs.
After escalating the trade war with China, US President Donald Trump is pulling back with some soothing words for Beijing. Trump told reporters at the Oval office that he was not going to further raise tariffs on China. "I don't want them to go higher because at a certain point you make it where people don't buy," he said. As always, wanting to be the winner by showing that his policies worked, the President claimed that the Chinese have reached out to the US a number of times.
Trump had hit China with a 245 per cent tax on all imports; up from the previously announced 125 per cent. Xi Jinping countered with a 125 per cent increase on American goods and also suspended supplies of six rare earth mineral metals needed to sustain certain strategic industries. In short, trade between the US and China would have come to a halt causing pain to both American and Chinese consumers.
The Global Times, the Chinese government라이브 바카라 English language paper, quoting the commerce ministry spokesperson said that the tariffs on Chinese products did not make economic sense "except to further demonstrate how the US weaponises tariffs to coerce and bully others.’’ China라이브 바카라 Commerce ministry, according to the newspaper, has maintained working-level communication with its US counterpart. China has from the beginning said it was open to negotiations. "The unilateral tariff hikes were initiated entirely by the US side, and it is up to the one who tied the bell to untie it," He Yongqian, China라이브 바카라 commerce ministry spokesperson had said at the news conference on Thursday.
China will be ready for talks, however it may drag its feet for some time, considering the insulting language used by Trump라이브 바카라 senior ministers. Vice President J.D. Vance had referred to Chinese as peasants. China does not take kindly to insults. It is not clear when negotiations will begin and how long it will take to conclude a trade deal between the two economic giants.
The trade war between the world라이브 바카라 number one and number two economic giants affect all countries. The 90-day pause on tariffs announced by Trump has given hope to many countries that they would be able to work out a trade deal with the US by the end of the deadline. But a China-US agreement will take much longer. Meanwhile both countries will suffer.
According to experts, as many as 20 million Chinese workers could lose jobs if exports come to a near halt. The trade in goods between the US and China was around $585bn last year; of this, America imported $440 billion worth of goods while its exports to China was considerably less at just $145 billion. The Chinese economy is fuelled by manufacturing units big and small that export most of their products to the US. Decoupling of the two giant economies will have devastating results for both countries in the short term.
Much will depend on how much pain the system can take. In a democracy where public opinion matters, people react quickly to rising prices. The economy and the price rise was a major factor for Donald Trump winning the presidential elections. People believed that Trump a business tycoon would be able to deliver. But in typical Trumpian style, he used a sledge hammer to announce the new tariff regime without taking into account the consequences, leading to blood baths in the stock markets, not just in the US but around the world. So much so that the chair of the Federal Reserve Jerome Powell cautioned that the central bank could face a challenging scenario of managing both a slowing economy and accelerated inflation thanks to the governments tariff announcements. This riled Trump, who had appointed Powell in his first term and threatened to terminate his services. The Federal Reserve is an independent entity. Trump라이브 바카라 economic policies may have gone well with his supporters, but certainly not with independents. In a recent opinion poll CNN reported that Trump라이브 바카라 popularity has plummeted to -22 among ordinary independent citizens. The Presidents billionaire friends are also uneasy and are said to have advised him to begin talks with China.
When the world라이브 바카라 two foremost economic powers are at loggerheads, the effect will be felt by all countries. Governments the world over are watching with keen interest the final outcome of the trade war and hoping the US and China pull back and begin talks. India라이브 바카라 commerce ministry has flagged concerns about China, Vietnam, the US and other countries flooding India라이브 바카라 huge market as a dumping ground for their products.
`` President Trump라이브 바카라 trade war could have very big effects. It could push the US economy into recession, put more downwards pressure on Wall Street, and push up the cost of debt. It could also damage the Chinese economy in the short term and many others in the longer term, as cheap Chinese goods are redirected into other markets. But the biggest effect will be the erosion of confidence in American leadership and American reliability,’’ says Ian Hall, professor at Queensland라이브 바카라 Griffith University. Australia which has close economic ties with China, is doubly concerned.
``Australia is already looking at a more challenging outlook as China라이브 바카라 economy slows, which will affect our mining, agriculture and education sectors. But for the moment we have escaped very lightly on the US tariffs, with the lowest rate of 10%.’’ Hall explains. India which is currently negotiating a bilateral trade deal with the US is also watching the US-China developments closely.