Washington (AP) – Price fight Between the two biggest economies in the world On Wednesday, President Donald Trump died in addition to danger when President Donald Trump tried to restrict his world trade war in a direct – and risky – confrontation – with Beijing.
Like Trump has reversed its greatest “reciprocal” prices On most of the world in the face of recession fears, he nevertheless made his prices on China once again. This decision encloses strategic rivals in an in -depth impasse which endangers their economies and their interests in the world. The stakes are higher than ever, because the United States and China are already involved in competition on everything From artificial intelligence to monetary policy to global global influence.
Each nation dares the other flash first. But climbing cycles raise worries that the window of diplomacy has still shrunk, while economic pain on the two economies is intensifying.
Behind everything, as usual, geopolitics hides – the concerns concerning regional and global security which are always at stake when the economic relations between two of the most powerful nations in the world become aggressive.
“When you hit the United States of America,” said Karoline Leavitt, the press secretary of the White House, “President Trump will bring back stronger.”
A back and forth approach
After Beijing responded to the “reciprocal” tax of US President Donald Trump on China with the same rate of 34% on American products, Trump increased the rate of 50 additional percentage points, to be respected by the same increase in prices in Beijing on Wednesday morning. American products that go to China must now be taxed at 84%.
A few hours later, Trump said that Chinese imports in the United States would be “immediately” imposed on 125%, citing “the lack of respect that China has shown in global markets”. However, universal prices on China actually total 145%. When Trump announced them on Wednesday, he did not explain a 20% price on China linked to his role in the production of Fentanyl that was already in force, said the White House.
“At one point, hopefully in the near future, China will realize that the days of tearing from the United States and other countries, is no longer sustainable or acceptable,” Trump wrote on his Truth social platform.
The secretary of the Treasury, Scott Bessent, insisted on the fact that it was Trump’s strategy and that Beijing was “showed in the world as a bad actors”.
While the financial markets have rebounded from their deepest stockings to the news that China would be confronted with the weight of Trump’s anger, the real prospects for the intensification of the trade war with China were still significant.
On Wednesday, the American-China Affairs Council urged the two leaders to “come to the table” and to speak. “The targeted prices to encourage China to come to the negotiating table are one thing, but these radical Tat-Tat rates are in the interests of anyone. They will considerably harm the global, American and Chinese economies as well as American, farmers and consumers,” said the Council.
Trump has given little room to Negotiate a ramp deposited with China, Unless of this capitulating country – which would be an anathema for Chinese President Xi Jinping.
“XI will not be forced to call,” said Sun Yun, Chinese program director at the Think Tank Stimson Center based in Washington. Only once in recent history, she noted, a Chinese chief phoned in the United States without an invitation-after the terrorist attacks on September 11. Trade tensions, if they are uncontrolled, could spread in other areas, she warned.
Craig Singleton, the superior Chinese researcher to another Washington -based reflection group, the Defense Foundation of Democracies, agreed that a Beijing telephone call is “unlikely in this climate”.
“Each party believes that time is on its side, which increases the risk that one or the other will move to defuse until real damage is caused,” he said. “These are no longer tariffs. It is a will.”
Both sides have their calculations
Before Trump’s announcement, Bessent called him “unhappy that the Chinese do not want to come and negotiate”.
“And I can tell you that this escalation is a loser for them,” said Bessent on “Morning With Maria” by Fox Business Network on Wednesday. “Their exports to the United States are our exports to China five times. So they can increase their prices. But, so what? “
China has its own calculations. His leadership, supervising the second world economy, has promised not to go to American intimidation.
While prices higher than Trump caught other surprise countries, China says it has been preparedHaving learned of a lesson in his previous pricing relations during Trump’s first term. In response to the several Trump prices cycles, Beijing responded quickly each time by a set of pricing and non -tariff measures.
“We have been in a trade war with the United States for eight years and have accumulated a rich experience of struggle,” said an editorial of the flagship newspaper of the ruling party on Monday. The newspaper assured the Chinese public that “the sky will not fall”.
“Faced with the impact of the intimidation of American prices, we have strong resilience,” said the party’s newspaper, citing the country’s dependence on exports to the American market and new measures to stimulate domestic consumption.
Since Trump imposed his first cycle of prices on China in 2018, Beijing managers have developed a tariff toolbox, import borders, export controls, sanctions, regulatory journals and measures to limit companies to do business in China. All are designed to inflict pain on American economics and companies in response to any commercial decision of the United States government.
Melanie Hart, principal director of the Global China Hub at the Atlantic Council, said Beijing “is now launching the whole toolbox against” the United States, black companies, hitting American farmers and cutting the critical mineral nation.
“They have a bunker they have built for this moment,” said Hart. “They are in the bunker. And if I am Xi Jinping, I feel much more comfortable than Donald Trump today.”
But People’s Daily also clearly indicated that Beijing remains open to talks. “Faced with volatility and extreme pressure from the United States,” he said, “we have not closed the door to negotiations.”
The official Xinhua news agency in the country, in an editorial, also insisted that China does not want a trade war – but can fight one.
“There are no winners in a trade war,” he said. “But China is not afraid of a trade war.”
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