strategy pivot via Twitter-message: After the last optimistic signals in the trade dispute with China has increased U.S. President Donald Trump with the pressure surprisingly and in the financial markets, massive uncertainty stoked.
Donald Trump 2016 for President of the United States was elected, he had promised his countrymen, to reduce the high external trade deficit. About two years ago now. Trump has tried it with duties of any kind. Against Canada or Mexico, and also against China, which is more than half of the trade deficit of the United States responsible.
imports from China in volume of 50 billion US dollars, the rate is already at 25 percent. Ten months ago, Trump had assigned certain Goods from China in the volume of 200 billion US dollars, with the special duties of 10 percent and at the same time, with a possible increase to 25 percent starting in January threatened. In December, both sides decided then to start negotiations. According to Trump, the negotiations were even “pretty good” as he had explained on Friday.
Trumps turning in the Handelszoff China
Now, therefore, the turn.On the, as yet, with 10 percent occupied Were from Friday and a further 15 per cent will be added. Further, imports of goods to the value of 325 billion to remain initially still free of special payments, said Trump on Twitter. This will change in the short term, threatening the U.S. President. How does Trump that? “The trade deal with China continues, but too slowly, because you try to negotiate. No!“
Why does Trump that? The Economist and US expert of Commerzbank, Bernd pastures Steiner knows Trumps trading strategy: “to China-directed Tweet was hidden under another, a peculiar course of action. China is in trade talks, apparently, as quickly as the hoped for Trump. He now relies on the typical American Deal-Maker attitude: on the table! But, if this is the correct method is questionable,“ the expert told derIppen-to-Digital Central office.
For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High-Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Of Dollars….
— Donald J. Trump (@realDonaldTrump) 5. May 2019
trump’s announcement brings stock markets in turmoil
The stock markets have reacted completely spooked. The Chinese stock market fell by more than six per cent, and in Europe, the start of the week on the stock exchanges of deep red. The European benchmark EuroStoxx50 lost until noon, more than two percent was the largest decline since the 2. January. Other markets fell sharply.
The Wall Street Journal reported, citing an Insider that China is now considering even the cancellation of trade talks with the United States. Publicly, Beijing does not respond, however, in the first place.
willow Steiner puzzled: “China knows what it is. The information from the USA are also contradictory. Maybe Trump will return to his project when it comes up to the Friday to make progress in the talks.“ Beijing to swing at Trumps course, is to open up the market for the US, its legal system to strengthen, and much more.
Trump was wrong in many things not so, the Commerzbank expert, as China’s unfair trading practices – such as dealing with intellectual property had long since become a Problem for many countries. “Whether trump’s negotiating strategy is to be purposeful, you have to wait, because the Chinese people are Patriotic and from abroad, don’t be intimidated. The government is now under pressure, because this conflict is above all a question of Prestige and Face. China should not give in too quickly, that would be politically problematic,“ said willow Steiner. It will probably be a few more hearing will be before the round, before the Big Player some of the.
+ The Economist and US expert of Commerzbank, Bernd pastures Steiner.©Pavel Becker
“all of That is not a good development,” willow Steiner concerned
By trump’s Tweets are in any case advised to the stock exchange prices worldwide under heavy pressure, because now, it is expected that the world trade gets more difficulties, and that neither the Chinese nor the US economy. The cost would rise because the production had to be relocated in other countries, companies might be less effective, what a burden, in turn, both the profit as well as the workforce of the company, thinks about willow Steiner.
“all of That is not a good development”, the expert is concerned. “All suffer from the dispute, in the medium term, the employee, because he needs to spend more money on Chinese products, such as mobile phones. By tariff walls, the cost of living, the diminished real incomes are rising,“ he believes. “If the most important and largest States argue, is the Problem for everyone,” says willow Steiner. Means, also for Germany. Also for the UK. There, Trump will be traveling soon on a state visit and made a fool out of yourself in advance.
China is one of the most important export markets, especially Dax-listed companies make a bulk of their profits. “If the Chinese economy suffers due to the trade dispute, it can lead to the ruin of German companies in China, the business properly. For the German economy, that would not augur well and the staff would come under pressure if the company would be less running to China,“ says willow Steiner.
the punitive tariffs Trumps Meeting the little man in the USA?
Particularly strong, this is likely to take the automotive industry, the in the Land of the rising sun has sites big production. And another Problem is rolling the same. In the next few weeks, Trump will announce whether or not it also provides for cars from the EU’s higher tariffs. His campaign promise Trump pursued persistently. According to estimates by the Kiel Institute for the world economy (IfW) overlooks Trump when trading poker with China, however, something Important: The higher punitive tariffs to meet, therefore, the own consumer. “According to our calculations, the US President has charged the customs clearance the most beneficial goods as the First,” said IfW President Gabriel Felbermayr of the “world”.
“If he extends now its punitive tariffs on the rest of the imported products, then he meets necessarily goods in which the cost-Benefit ratio for the U.S. economy is particularly bad.” While the American producers benefited from the tendency of the duties, “will be charged to the consumer, in some cases considerably”.
If Trump feels the same way?
Not only with China, the US President, also around Trumps the election campaign, there are always headlines, Cuba hatTrump also on-screen advice, however, he has for Boeing – he even suffered with a flight line, a belly landing
