THE Donald Trump announced a huge plan last week dictatorial which shook the world economic class, as well as the long -term trade relations with the allies of America. However, Trump’s trade war develops into a Target Bra de Fer Between the US and China.
However, this plan – or at least one important part of it – is now “in the refrigerator” as the president has suspended the highest duties for most countries for 90 dayswhile at the same time intensifying trade war with China that will increase duties on all US products from 84% to 125%, from 12.04.2025 from 12.04.2025 Following the US president’s decision to increase US duties in China.
After a dramatic week Anthony Zurcher attempts to BBC An assessment of the results of Trump strategy based on its five main goals.
Objective No1: Best trade deals
As the BBC notes, Trump’s original commercial plan was a great punch that landed around the world, with one Fixed basic 10% duty for all (including certain uninhabited islands) and Additional ‘mutual’ duties in 60 countries which as he had stated “They were the worst offenders.”
In fact, the White House hastened to boast all the world leaders who contacted the president to make agreements and offer trade concessions – “more than 75”, according to Finance Minister Scott Besed. Although the government did not publish a list of all countries that Trump said of “kissing K@@” for an agreement, The US has announced that they are in negotiations with the Southerly Korea and Japanamong others.
Conclusion: America’s commercial partners have 90 days To achieve some kind of agreement with Trump and time passes. But the fact that conversations are being made shows that The president has a good chance of gaining something for his efforts.
Objective No2: Strengthening American Industry
Trump said that “jobs and factories will come back to our country … We will overload our domestic industrial base.” Trump has said for decades that duties are an effective way to rebuild America’s productive base by protecting it from unfair foreign competition.
While some factories may be able to increase production in current installations, they require time for more meaningful efforts. And for business leaders to start to “renovate” their production lines and invest in new US factories, they will want to know that the rules of the game are relatively stable.
However, the terms by which the imposition of duties was implemented during the previous week are inherently unstable.
At the moment, it is difficult to predict where the duties will reach and which industries will receive the favor of the US president. They could be car manufacturers and steel producers or even high -tech electronics companies.
Conclusion: When duties are applied and suspended in such a short time, it is much more likely that businesses – both in the US and abroad – to adhere to Attitude Standing, before they make greater commitments and rearrangements in their production.
Objective No3: China’s marginalization
“I have great respect for Chinese President Xi, a great respect for China, but we were exploited terribly,” said Trump. Following the decision to suspend duties on Wednesday (09.04.2025), there were several White House officials, who said Trump’s goal was ultimately to put pressure on China. “It is the biggest source of US trade problems,” the finance minister said to journalists, “and indeed is the problem for the rest of the world.”
If Trump wanted to try the china toleranceeven if he had stated that the goal is to negotiate, blaming previous US leaders and not Beijing for the current trade conflict.
Conclusion: Even if Trump is determined to fight with China, the world’s second -largest economy, which has similar military power, has huge riskaccording to the BBC. At the same time, however, as the US followed, they can alienate the allies they need in such a confrontation.
Objective No. 4: Increase in revenue
“Now is our turn to prosper, and in this way, we use trillions and trillions of dollars to reduce our taxes and pay our national debt, and everything will be done very quickly,” said Donald Trump.
Already in his election campaign, the US President estimated that duties would generate huge revenue, which the United States could then use to shrink their fiscal deficit, fund tax cuts and new government programs.
A study published last year by the Tax Foundation estimated that a 10% Catholic duty would bring $ 2 trillion in new revenue over the next 10 years.
Tax cuts that included Congress recently in its non -budget budget plan will cost about $ 5 trillion over the next 10 years, according to the Bipartisan Policy Center.
Conclusion: Trump needed more revenue to implement the economic policy that would benefit American citizens. If it insists on the basic, at least duties it has announced and the additives it has announced to China, it will have the revenue it needs- at least until the Americans turn to domestic production, so duties could be reduced.
Objective No 5: Lower prices for US consumers
“After all, more interior production will mean stronger competition and lower prices for consumers. This will indeed be the golden age of America ‘, Donald Trump promised. Analysts and experts have a different opinion on why Trump made such an aggressive move last week.
Was he trying to reduce interest rates, or underestimate US dollar or bring the world to the table for a new, global trade agreement? The president himself has not talked much about such complex plans.
One thing he has talked about many times, however, is his desire to reduce the costs for American consumers – and has promised that his commercial policy will help tackle this problem. While the Prices of energy declined per week Ever since Trump announced the duties, this might have been The result of fear that the trade war could cause a global downturn.
According to a Tax Foundation survey, the implementation of 10% universal duties would cost averaging US households by $ 1,253 in the first year. Citizens with lower income is expected to be more vulnerable.
Conclusion: Raising prices resembles an arrow moving in the wrong direction and can in the future be a huge danger to Trump’s political position and his party.