It's a very clever person who understands Donald Trump's economic policy strategy. Last Wednesday, the American president announced with great fanfare the implementation of customs tariffs on imports of goods from dozens of countries, based on criteria that were, to say the least, questionable. After an initial level of 10%, the implementation of these tariffs has been effective since today... but ultimately suspended!
90 days of respite before a new storm
The first 10% remains, but the remainder (which can be very high) is suspended for a period of 90 days, explains Donald Trump on his social network. "In view of the fact that more than 75 countries have contacted representatives of the United States (...) to negotiate a solution to the ongoing issues concerning trade (...), and that these countries, on my firm recommendation, have not taken any retaliatory measures against the United States, I have authorized a 90-day PAUSE,” he wrote.
Despite this famous 10%, the announcement will be seen as a relief by businesses, chancelleries, and financial circles that have been keeping stock markets around the world buoyed for the past week. But it will only be temporary, since in 90 days, it will all happen again… and probably until the end of Trump’s term.
Customs tariffs, however, remain a topical issue for one country, and not the least: “I decide to immediately raise the customs tariff applied to China by the United States of America to 125%," Donald Trump asserts. They were at 104% since this morning, but Beijing has decided to up the ante with its own 84% tariffs on American products imported into China.
All of this will ultimately not be such a good deal for Apple, which manufactures the majority of its iPhones and a good portion of its other products in China.
Source: CNBC
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