Trump pauses tariff hikes for 90 days against most countries, raises China rate to 125%
Trump announces 90-day tariff pause due to ‘yippy’ critics — after boasting stock rebound ‘gotta be a record’
This bitch folded so fast!
Stocks Surge After Trump Pauses Tariff Hikes on Non-Retaliating Countries
After Trump’s hike on China tariffs and pause on the rest the world, a perverse dichotomy now exists for global trade: 125% US duties on Made-in-China vs 10% or 25% levies on products made elsewhere, though only for 90 days.
The consequence? Tremendous opportunities for “re-assembly” plants in Vietnam or Southeast Asia, or outright smuggling operations in Mexico or Canada, given the potential arbitrage opportunity.
Such a situation couldn’t last long, with US consumers paying higher prices and third countries making a good profit - to evade US tariffs. The 90-day pause provides a good off-ramp, and Beijing and Washington may both think long and hard about the risks of further escalation. The tariff on China may eventually settle at a level where both countries can tout as a win, while leaving it not that profitable for a third-country detour.
Lolz. Lmao, even.
lol can't afford china tariffs, so he had to drop other countries tariffs to focus on china. lol. Well done, china.
Now, he is forcing Americans to pay 125% tax on china imports.
On Monday he said there wouldn't be a pause. He's always lying. Which means an investor can't trust him.
If there is a tariff this gives the edge in pricing to the manufacturer who produces in the US. If you think the tariff is here to stay it makes economical sense to invest money to move your manufacturing to the US, because then you can get better margins or better market share.
If you do that, and then the tariff is cancelled your competition who can produce more cheaply and reach the same market has the edge again. You just lost the investment, and you might be forced to invest even more to move back.
The more Trump uses tariffs for short term power plays like here the less they will work for long term industry movement, as investors doubts piles up. His ridiculous promises of a new industrial age for the US are only becoming more ridiculous.
On Monday he said there wouldn’t be a pause. He’s always lying. Which means an investor can’t trust him.
There are certain investors that can trust him, that being his buddies. They were probably told there would be a pause and it got out early, so he denied it to keep the dump going so they could continue buying before when they planned the pump.
in response to overtures from dozens of countries
I expect that countries are going to end up avoiding tariffs by openly bribing Trump.
Only works if he keeps his word. And Trump's word isn't worth the shit its scrawled in. We're already seeing this problem with Canada and Mexico, where importers are being told they're going to get assessed the Chinese tariff on the full price of imports and then maybe eventually be eligible for a refund once the Trump administration figures out what percentage of the import qualifies as "Chinese".
This Chinese-exclusive tariff isn't any kind of relief, because too much manufacturing is sourced out of China. All we're going to see is businesses resort to increasingly elaborate methods of concealing a product's national origin.
Granted that his word is worthless, the rest of that is part of why I expect that he'll take bribes - because he doesn't have an end game.
I think he got into this whole tariff thing in the first place because he saw them as leverage, and as a desperately insecure overgrown child focused entirely on manipulating people into feeding his unquenchable greed, lust and insecurity, he can't pass up an opportunity for leverage.
Early on, he made a lot of noise about forcing foreign manufacturers to open American factories, but by capriciously proposing, delaying, enacting and rescinding tariffs, he's already guaranteed that that's not going to happen. So about all that's left already as a practical benefit is the fact that they're essentially a tax increase on consumers, and that might've been enough for him, since he needs to fund his cronyistic spending and his tax cuts for the 1%, but he's discovering that policy decisions have economic consequences that he can't avoid just by throwing a tantrum, so it's looking like he'll have to either let that go or get blamed for destroying the US economy.
So now he's in a prime position - he needs to weasel out of this whole tariff thing, but his ego still demands that he has to win somehow, which means that a foreign country should be able to come over here, set up a meeting, kiss his stinky ass and slip him a few million dollars, and he'll congratulate himself on using the leverage to his advantage and turn his attention somewhere else.
And while his word is worthless, that's not really what it comes down to. It's not that he'll hold to a decision on tariffs because he gave his word, but that once he's mollified, he'll happily stop thinking about them entirely and just look for his next opportunity to apply leverage to feed his ego, greed and/or lust.
Nobody was coming to kiss his ass... if that were the case, he would have waiting to get a good deal out of them
This is trump in his mediocrity trying to save face as his bluff was taking the USA faster than any enemy could
Weak people create hard times. I guess we are currently in the FO path.
Don't be fooled, world. This is still an assault on the trust you have built with America. Nothing is stopping Trump from adding it in again, dropping it, doing anything on a whim if he gets pissy.
Everyone can join? Even the Uyghurs?