US-China confrontation overshadows Trump’s ‘beautiful’ trade war

WASHINGTON, DC, United States (AFP) — President Donald Trump claimed victory over Europe within the US tariffs struggle however acknowledged a “price” to his surging commerce offensive towards superpower rival China as markets plunged once more Thursday.

Trump sought a victory lap at a White Home Cupboard assembly, saying the European Union (EU) had backed off from imposing retaliatory tariffs due to his robust stance on China.

“They had been very sensible. They had been able to announce retaliation. After which they heard about what we did with respect to China… and so they mentioned, you understand, ‘we’re going to carry again a bit of bit’,” he mentioned.

Trump acknowledged “a transition price and transition issues”, however dismissed international market turmoil. “In the long run it’s going to be a wonderful factor.”

Treasury Secretary Scott Bessent was upbeat, telling reporters that “I don’t see something uncommon in the present day”, as he touted higher than anticipated US inflation numbers and different financial indicators.

However main indices spent the whole day within the purple, with the broad-based S&P 500 ending down 3.5 per cent after hovering 9.5 per cent on Wednesday.

The Dow Jones Industrial Common shed 2.5 per cent, whereas the tech-rich Nasdaq slumped 4.3 per cent.

Oil and the greenback additionally slid on fears of a worldwide slowdown in financial exercise, whereas safe-haven asset gold hit a brand new document.

Thursday’s market losses adopted giddy good points on Wednesday within the aftermath of a shocking Trump climbdown, the place he maintained a ten per cent blanket tariff on most international locations however paused plans for tariffs of 20 per cent on the EU and even larger levies on a number of different commerce companions.

The dialing again of the deliberate international commerce struggle left a lot of the concentrate on China, the world’s quantity two financial system after the USA.

The White Home on Thursday clarified that levies on Chinese language imports at the moment are at a staggering complete of 145 per cent — not the beforehand reported 125 per cent.

This was as a result of the most recent tariff hike comes on high of a 20 per cent tariff already imposed earlier. China has retaliated with levies of 84 per cent on US imports.

Trump says he needs to make use of tariffs to reorder the world financial system by forcing producers to base themselves in the USA and for different international locations to lower boundaries to US items.

Howard Lutnick, his commerce secretary, was bullish, posting on social media Thursday that “the Golden Age is coming. We’re dedicated to defending our pursuits, partaking in international negotiations and exploding our financial system”.

Amid questions over how far Trump is able to push, the European Union welcomed the US president’s partial row-back on his unique menace to impose 20 per cent tariffs towards the bloc.

The 27-nation grouping responded with its personal olive department, suspending for 90 days tariffs on 20 billion euros (US$22.4 billion) value of US items that had been greenlit in retaliation to duties on metal and aluminum.

“We wish to give negotiations an opportunity,” EU chief Ursula von der Leyen mentioned in an announcement.

She warned, nonetheless, that “if negotiations will not be passable, our countermeasures will kick in” and that each one choices stay on the desk.

Trump likewise warned that the partial thaw may return to deep freeze after a 90-day truce interval.

“If we are able to’t make the deal we wish to make… then we’d return to the place we had been,” he mentioned.

Canadian Prime Minister Mark Carney known as Trump’s reversal a “welcome reprieve” and mentioned Ottawa would start negotiations with Washington on a brand new financial deal after elections on April 28.

Vietnam mentioned it had agreed with the USA to begin commerce talks, whereas Pakistan is sending a delegation to Washington.

In its newest measure, Beijing introduced it will cut back the variety of Hollywood movies imported, however mentioned it remained prepared for dialogue.

“We hope the US will meet China midway, and, based mostly on the rules of mutual respect, peaceable coexistence and win-win cooperation, correctly resolve variations by way of dialogue and session,” Commerce Ministry spokeswoman He Yongqian mentioned.

Trump dismissed Beijing’s clampdown on US movies, saying, “I feel I’ve heard of worse issues.”