The Guardian view on the tariff war pause: the Trump trade shambles is not over | Editorial
IT Donald Trump was first. Never forget that. China It is unlikely to lose sight of its importance. A week after the launch of a comprehensive global trade war, the US president stopped large parts of it for 90 days. After he insisted that he adhere to A random tariff It was imposed on most commercial countries, Mr. Trump has suddenly released that he would reduce most of them to 10 %. It was a great insult.
However, 10 % remains an important tariff to bear the countries that are exported to the United States. This is also Temporary stopping only Until July, not withdrawal, therefore remains uncertain. The huge definitions in China (now increased to 145 %), Canada and Mexico (both of them 25 %), as well as in all American imports of steel, aluminum and cars (also 25 %). Mr. Trump replaces the conflict in the American world with one of the United States of China. The world’s largest economics – which were born around half of the global economic growth in the twenty -first century – no longer dealt with each other.
However, this was a necessary step from the edge of the abyss. He was enough For operation, it will be temporarily bounce on stock markets worldwide, although prices fell on Thursday and remain much less than the beginning of April. In the week since the ridiculous “liberation day” of Mr. Trump, more than 6 meters of value of shares have been eliminated on the S&P 500. It is a shameful result.
Mr. Trump claims that he took this step because more than 75 countries were ready to negotiate or “kiss my ass.” This is nonsense. He did not come out of the war of tariffs. He did not win. No one negotiated. Trump is making his usual efforts to demand another victory. The simple fact is that it retreated because it was forced to do so.
Mr. Trump can decline is good news, as much as he goes. In general, last week was an indictment for the president, his policies, instincts and behavior. The stop stopping on anything should be seen as evidence that rational works can be done with him. For one reason, this week’s chaos may start again with the approaching July. The White House has given itself more time to make some very big calls.
Two things seem pivotal in decision Announced on Wednesday. The first was the high temperature of the American bond market, sabotaging the constant assumption that dollar bonds will always be a safe balance, and to attract the federal reserve to the threshold of intervention. A A similar crisis Liz Trex’s economic strategy in the United Kingdom in 2022, but the destructive capabilities of the American bond crisis are much greater. Mr. Trump’s tariff threatened the comprehensive recession.
The second factor was some of the elite domestic rush. Senate members appeared anxiety on the Fox News (which the president is watching) and pressed the case to contact it. JPMorgan Chase’s president warned against stagnation. As well as a handful of world leaders and some of the Trump cabinet members in phone calls.
These facts were a brake for Mr. Trump this time. It is possible that the shock has left its mark and there will be no repetition now. But there There is no confidenceNot to mention accepting that this result has been planned all the time. Even Mr. Trump admitted that the Americans were “getting the Japanese.” They had all the right to be. And so did the markets, along with the rest of the world. Confidence has long disappeared, and it is now replaced by uncertainty. There is no method that has ended.
