The European Union will arouse its first countermeasures against American prices after President Donald Trump temporarily lowered the important functions he had just imposed in dozens of countries, the head of the European Commission Ursula von der Leyen said on Thursday.
The block was to launch counter-triggers out of around 21 billion euros (32.7 billion CDN dollars) of American imports next Tuesday in response to the 25% Trump prices on steel and aluminum. He always assesses how to respond to the American prices of cars and the 10%wider samples.
“We want to give negotiations a chance,” said Von Der Leyen on X. “During the finalization of the adoption of EU countermeasures which experienced strong support from our Member States, we will suspend them for 90 days.”
In Europe, the government’s bond yields of the euro zone have jumped, the differences have tightened and the markets reduced their bets on the rate decreases of the European Central Bank after Trump’s last announcement. European actions have increased.
Trump’s decision was an important step towards stabilization of the global economy, said Von Der Leyen, before announcing a break in EU counter-tale.
But she warned that they could be brought back.
“If the negotiations are not satisfactory, our countermeasures will be hampered. The preparatory work on new countermeasures continues,” she said, before adding: “As I said already, all the options remain on the table.”
The EU had to impose additional prices on American imports, including corn, wheat, motorcycles, poultry, fruit and clothes. These are now suspended.
Despite the stay, some central bankers and analysts remained cautious.
The European decision -maker of the Central Bank François Villeur de Galhau, speaking of the break in the price hike, said on France’s radio, it was “fewer bad news” than before, but uncertainty remained and it was a threat to confidence and growth.
Front burner23:09The last time the United States has priced the world
China is not spared
On Wednesday, Trump’s sudden decision to suspend most of his heavy tasks brought relief to the beaten world markets and anxious world leaders, even though he accelerated a trade war with China.
US officials initially made contradictory statements on the question of whether a reference rate of 10% on all goods would apply in Canada. The White House confirmed that she would not. Paul Beaudry, former MP for the Bank of Canada, says that this is good news for Canada for the moment – but the Trump administration could still change your mind at any time.
Trump’s reversal on prices imposed on other countries is not absolute either. A right of coverage of 10% on almost all American imports will remain in force, said the White House. The announcement does not seem to affect tasks on cars, steel and aluminum which are already in place. This general service of 10% does not include Canada; Instead, Canada continues to cope with 25% prices on non -cusma products, on steel and aluminum and certain vehicles.
The Trump administration weighs the offers of more than a dozen countries on pricing agreements and is about to conclude agreements with some of them, said the economic adviser of the White House, Kevin Hassett.
“The USTR informed us that there may be 15 countries that have made explicit offers that we are studying and considering and deciding if they are good enough to present the president,” Hassett told the White House journalists, referring to the US trade representative.
The directors of the administration’s commercial policy will meet at the White House on Thursday to discuss how to prioritize separate negotiations, said Hassett.
US officials said they would prioritize talks with other countries while Vietnam, Japan, South Korea and others would line up to try to conclude a good deal.
Trump’s turnaround, which came less than 24 hours after the start of new prices, saw the American stock market indices shooting higher accordingly, and the relief continued in Asian and European exchanges on Thursday.
Before Trump’s U-turn, the upheaval had erased billions of dollars in stock markets and led to a disturbing increase in bond yields of the United States government which seemed to attract the attention of the American president.
Meanwhile, China rejected what it called the threats and blackmail of Washington.
The American-chinual trade war is in full swing, neither of the two parties showing signs of safeguard. Andrew Chang explains how China is positioned to absorb the shock of American prices and what this global economic disturbance could mean for their place in the world order. Images provided by Getty Images, The Canadian Press and Reuters.
Trump maintained the pressure on China, the world No. 2 economy and the second largest provider of American imports with an increase in prices on Chinese imports to 125% compared to the 104% level which started on Wednesday.
He also signed a decree aimed at reducing China’s grip on the maritime transport industry and relaunching American shipbuilding.
China “will follow until the end” if the United States insists on its own way, the spokesman for the Ministry of Commerce, Iongqian, said at a regular press conference. The Porte de la China was open to dialogue, but this must be based on mutual respect, said the ministry.
Beijing can react again in kind after having imposed 84% of the prices on American imports on Wednesday to match the previous price of Trump Salvo.
Trump claims that prices aim to repair American commercial imbalances, although a large majority of economists do not consider a trade deficit alone as a sign of the economic health of a country.
The China Yuan struck the lowest compared to the dollar on Thursday since the global financial crisis.
