President Trump suddenly reversed the course on the steep world rates that disrupted the markets, upset the members of his own party and has raised fears of a recession. Only a few hours after putting in place punishing withdrawals from nearly 60 countries, the president said that he would break them for 90 days.
But Mr. Trump did not extend this break to China, rather opting to increase the prices again on all Chinese imports, which brought these taxes to 125%. This decision reached after Beijing increased its samples from American products at 84% Wednesday afternoon in degeneration in tit-form between the biggest economies in the world.
In an article on Truth Social, the president said that he had authorized “a 90 -day break” in which the countries would be confronted with “a tariff considerably reduced” by 10%. Consequently, almost all American trade partners are now faced at a coverage rate of 10%, in addition to the 25% rates that Trump imposed on cars, steel and aluminum.
The collapsing markets quickly joined after Mr. Trump’s post. The S&P 500 has climbed several percentage points in a few minutes and has closed with an increase of more than 9%, strongly reversing the loss days. Wednesday was the best day for the S&P 500 since the recovery of the 2008 financial crisis.
Almost all the actions of the index have increased. Airlines, certain technological companies and Tesla were one of these companies to hover more than 20%. The actions of car manufacturers have increased sharply, even if 25% of prices on imported cars remain in place. Ford and General Motors have both increased by more than 7%.
Trump, who for days had insisted that he was not concerned about the rout of the market, admitted Wednesday that the slowdown had made his decision.
“In the past few days, it looked quite dark,” said Trump. “I thought people jumped out a bit from the line,” he said, explaining his decision. “They became Yippy. They were a little afraid. ”
The change of Trump, in progress, came in the midst of a high sale in the bond markets of the US government and the dollar, which are generally considered to be the safest corner for investors during trouble. Large and small investors had seen billions of billions in market value disappear in a few days, and economists are increasingly sounding urgent alarms that the United States could submit to a recession of its own manufacturing.
Asked Wednesday if the bond market reaction had drew his attention, Trump said that he had noticed during the weekend that investors became “zero”.
“I was looking at the bond market; the bond market is very delicate, but if you look at it now, it’s beautiful,” he said.
The 90 -day judgment at the prices finally caused a rush to the equity prices, which encouraged the president to suggest on the sidelines of an event in the White House that the gains could have established a “record”.
Earlier in the day, Trump told Americans to “be cool!” And quickly followed with a post saying “It’s time to buy !!!”
This has prompted some Democrats to suggest that Trump intentionally manipulated the stock markets. During a hearing in the House of Representatives on Wednesday, several Democrats interviewed Jamieson Greer, the US trade representative, about the president’s objective.
“It is not market manipulation,” said Greer. “We are trying to reset the world trading system.”
The president announced last week that he would increase the prices at the levels that are not seen for a century, a change which, according to him, would make world trade more equitable even if it caused “discomfort”. While the markets took place, Mr. Trump and his advisers insisted that they were determined to maintain the prices until other countries reduce their trade barriers and make other economic changes.
Dozens of foreign countries have run to bring together delegations to call on the Trump administration. During his hearing on Wednesday, Greer said he had meetings on Tuesday with European, South Korea, Ecuador and Mexico, in addition to countries like the United Kingdom in recent weeks.
Vietnamese officials had proposed to cut their prices on American apples, cherries and ethanol, and brought a long -lasting sheet of the changes they were ready to bring, said Greer. He predicted that negotiations would lead to “markets open abroad”, creating a “virtuous cycle” for American manufacturing.
Mr. Greer criticized the typical way of negotiating commercial transactions, describing them as “where you ask others good to give you market and make a dialogue with you for several years, and in the end, you have no more access to the market.”
“And then there is the Trump way,” he added.
While the hearing approached his end, Trump sent his post announcing the break, who took the gathering by surprise and struck the room.
“It’s amateur hour,” shouted representative Steven Horsford, Democrat du Nevada. “It seems that your boss has just removed the treadmill.”
But while Trump lowered the prices on most countries in the world, at least until July 9, Wednesday events left the punitive prices in place in China, the second source of American imports last year.
China makes most of the mobile phones in the world, computers, toys and many other products. When these articles are brought to the United States, importers – most of which are American companies – should pay more than the cost of the article itself in the government.
Beijing and Washington have been engaged in a tit-form conflict since Mr. Trump’s return to the White House. The President vilified China as an economic aggressor whose entry into the World Trade Organization has decimated workers and communities across the United States. While China has become a manufacturing power, many American industries have benefited from access to the Chinese market.
Asked on Wednesday if he expected to continue to increase the samples from China, Trump said no and suggested that he was waiting for a call from the Chinese leader, Xi Jinping, so that the two could conclude an agreement.
“China wants to conclude an agreement,” he said. “They just don’t know how to go.”
Last week, after Mr. Trump imposed a rate of 34% on China, Beijing responded with an equal levy. Trump then added an additional 50%rate, which China was equal to a 50%levy.
The Ministry of Commerce announced on Wednesday that it put export checks on 12 American companies and added six other American companies to its list of “unreliable entities”, which means that they will not mainly be interrupted to do business in China or with Chinese companies.
Mr. Trump’s advisers quickly tried to run his decision to remove most of the prices worldwide as a victory and not as a capitulation. Bessent said the prices had worked to get some of the neighbors closest to China such as Vietnam and Cambodia to seek agreements with the United States.
On Wednesday afternoon, the president told journalists that he could consider exempting certain American companies from the prices, in addition to the 90-day break. He said that his decision on this subject would be taken “instinctively”.
The reports were brought by Talmon Joseph Smith,, Colby Smith,, JOE RENNISON,, Robert Jimison,, Keith Bradsher And Alan Rapportport.
