The US actions sank Thursday, returning some of the enormous profits that followed the decision of the president of the United States, Donald Trump, the day before to temporarily reduce their radical tariffs in dozens of countries, since investors evaluated the state of their global commercial war.
The S&P 500 index fell 5.2 percent on Thursday afternoon, while Nasdaq fell 6.1pc and the Dow Jones industrial average dropped 4.5pc.
The European Union (EU) said it would stop its first counter-tarifas, and more than a dozen countries have made offers to the United States, according to the Economic Advisor of the White House, Kevin Hassett.
Trump’s sudden decision on Wednesday to freeze most of his strong tasks for 90 days brought relief to the mistreated markets and anxious global leaders, even when a commercial war with China increased. The White House said that the tariffs on China are now effectively 145PC after counting the taxes that Trump accused shortly after becoming president.
But Trump’s Whipsaw approach has companies that still care about the possible consequences and the fight to prepare for what could happen in three months.
His change, less than 24 hours after the tariffs began, followed the most intense episode of volatility of the financial market since the first days of the Covid-19 pandemic.
The EU had to launch counter-aroncels in around 21 billion euros ($ 23.25 billion) of US imports next Tuesday in response to tariffs of 25 percent of Trump over steel and aluminum. It is still evaluating how to respond to the US cars. UU. And the largest leaflets of 10pc that remain in place.
“We want to give negotiations a chance,” said the president of the European Commission, Ursula von der Leyen, in X. But warned that counter-tarifas could be reinstalled if the negotiations “are not satisfactory.”
The Trump administration is close to reaching agreements with some countries, Hasett told the White House journalists on Thursday.
“USTR has informed us that there are perhaps 15 countries now that they have made explicit offers that we are studying and considering and deciding whether they are good enough to present the president,” Hasset added, referring to the commercial representative of the United States.
The directors of the administration’s commercial policy will meet Thursday at the White House to discuss how to prioritize separate negotiations, said Hasett. The fall of actions on Thursday occurred despite the fact that the United States data shows that consumer prices unexpectedly fell in March. However, it is unlikely that the improvement in inflation persists if the high rates of Chinese products remain in place.
Trump maintained the pressure on China, the world number 2 and the second largest US import supplier, increasing tariffs on Chinese imports to 125 % from the level of 104 percent that was activated on Wednesday.
The White House told him CNBC On Thursday, that has the general rate of new rates imposed by Trump in China to effectively 145pc by taking into account the 20 percent rates that Trump imposed to China earlier this year for Fentanyl concerns.
In addition, everything he has imposed since he returned to the White House this year is also stacked in addition to other rates that Trump implemented during his first term in office.
The American shares indices shot higher in Trump’s announcement, and relief continued in the Asian and European trade on Thursday.
Before Trump’s change, agitation had erased billions of stock markets, raised recession fears and led to a disturbing increase in the yields of the United States government bonds that seemed to capture Trump’s attention.
Clay Lowery, former Treasury Officer and Executive Vice President of the International Finance Institute, said Trump’s reversion reflected the concern that investors were active from both the stock market and the treasure market.
“The 10 -year treasure performance was climbing, and it was precipitously,” he said. “That was the catalytic event. Having volatility in the markets, is fine, but we are not trying to create a financial crisis or a problem of financial stability here.”
Commercial War with China
China rejected what he called threats and blackmail from Washington. “China will continue until the end if the US persists,” said the spokesman of the Ministry of Commerce, He Yongqian, a regular press conference.
China’s door was open to dialogue, but this must be based on mutual respect, the ministry said. Beijing can respond again in kind after imposing 84pc rates on US imports on Wednesday to match Trump’s previous save.
Trump, who states that tariffs are aimed at providing commercial imbalances in the United States, said that a resolution with China is also possible. But the authorities have said that they will prioritize conversations with other countries such as Vietnam, Japan, South Korea and others align to try to achieve treatment.
The Yuan of China reached its lowest level against the dollar on Thursday from the world financial crisis. In Europe, the yields of the Eurozone government bonds jumped, the differentials hardened and the markets reduced their bets in the cuts of European central banks after Trump’s last announcement. European actions increased.
The US rate.
Uncertainty and concerns
Petroleum prices retired in more than 3PC on Thursday as fear of a depth of the United States-China commercial war and a possible recession eclipsed the previous relief created by Trump’s pause announcement.
Some central bankers also remained cautious. The politician of the European Central Bank, Francois Villery of Galhau, told France Inter Radio that it was “less bad news” than before, but that the inception ongoing was still a threat to trust and growth.
And business leaders warned that not everyone resolved. The head of the French wines and liquor lobby group, Fevs, said Trump’s decision to get to a pause was “half good news.”
Nicolas Ozanam said the measure will initially allow companies to resume shipments with lower tariffs and, therefore, at the same level as other suppliers.
However, the 90 -day window created logistics restrictions, and since the customs duties of 10 percent remained in place, the sector still faced inflationary pressures. “This will still lead to an increase in prices and, therefore, a fall in consumption in the United States,” he told Reuters.
