Although at the beginning of the month the Donald Trump imposed duties 145% of US products entering China, the US president is now changing attitude, fearing the consequences of the trade war.
Donald Trump heralded a “significant” reduction in duties imposed on Chinaautomatically causing relief in world markets. Immediately after his statements, observed rise to Asian stock markets, from Tokyo to Hong Kong, and allowed to dollar to recover.
At the same time Donald Trump announced that he does not intend to dismiss Fed Federal Bank President Jerome Powelldespite the fierce criticism of him.
During a ceremony at the White House, Donald Trump admitted that the extra 145% duties he imposed on Beijing “are very high”adding that they will “reduce significantly”.
“They will never remain close to this number,” the US president stressed, though he explained that “We will not go back to zero. “
“We will be very kind and see what happens,” Donald Trump said, referring to China.
“In the end, they should reach an agreement because without it they will no longer have trade relations with the US,” he warned.
“We set the terms of the agreement and will be a fair agreement. I believe it is a process that will move forward quite quickly, “he said.
Donald Trump has imposed additional duties on the US trade partners in early April, mainly in Europe and Asia, causing turbulence on markets.
A week later, it reduced the additional duties for all countries to 10% with the exception of China.
The additional duties imposed by the Republican on Beijing are at 145%, With China responding by imposing an additional 125% duties on US imported products.
Although Beijing has not confirmed talks with Washington, US Finance Minister Scott Bessed estimated yesterday during an event in Washington that the current situation is not viable for either sides.
Bessed believes that additional duties act as a commercial embargo and block product exchanges between the US and China.
The White House spokesman Caroline Levit pointed out, for her part, that talks to reach a trade agreement with Beijing are going “very well”.
At the same time, China called on Britain and the EU to defend world trade against the US attack.
“In the current context of generalized unilateral bullying, China and Britain have a responsibility to protect the multilateral commercial order,” Chinese Foreign Minister Wang told his British counterpart David Lamy during telephone communication.
In another conversation he had with his Austrian counterpart Beate Main-Raizinger, Wang said that “China and the EU should assume international responsibilities, defend the polymer trade system with a common agreement and work together”.