It seems that India is benefiting from its strategy of starting a dialogue with the US for bilateral trade agreement, as well as its restraint not to retaliate against American charges. US President Donald Trump suspended his additional tariff on 75 countries including India on Wednesday, 9 April for 90 days. They will have to pay only 10 percent basic fee by July. On the other hand, China, who responded to the tariff of America with tariff, put a huge tariff of 125 percent on it. The question is why Donald Trump took a U-turn on 75 countries including India? What is Trump’s brain game?
What is going on in Trump’s mind?
For several days, after emphasizing that he will maintain his aggressive tariff strategy, Trump has said that the countries that have not retaliated against the American tariff will get relief by July. For the next 90 days, he will have to face only 10% American tariffs. Asked why he ordered 75 countries to give relief in tariffs, the US President told reporters: “People were getting out of a little extent. They were irritating.” Actually, this ban on tariff was not only needed by other countries, but America itself is also under its pressure. Just as the US stock market has jumped up to 10 percent after the 90 -day suspension announcement, it is known that the US market is clearly felt the pressure of Trump’s tariff policy.
The US stock market has seen several turbulent trading days since rapid reforms. The US government bonds are traditionally considered one of the world’s safest financial assets. But before stopping the tariff by Trump, it also faced a dramatic selling. It is also worth noting here that Trump has not abolished his tariffs on these 75 countries, but has stopped them. That is, they have the next 90 days to compromise on how to trade with these 75 countries. Trump told the media at the Oval Office that he was considering the move “for the last few days”. “We do not want to hurt countries that do not need it. And they all want to talk.”
Speaking in the National Republican Congressunal Committee a day before the tariff was banned, Trump crossed every limit. He made fun of the tariff affected countries and said that he is ready to do anything to interact with him. Till now, the country is total, my A ** are being wasted. It was the language of the President of the most powerful country in the world. But now they are seen on the backfoot a day later.
Now the strategy of giving a tariff from China and the European Union seems to be working by the Tram’s tariff. The European Union announced a 25% tariff on several US imports in the first round of retaliation. This group of 27 countries has agreed to impose mutual tariffs on American goods worth 21 billion euros (18 billion pounds). All member countries except Hungary voted to react.
However, Trump has only targeted China, which is two steps ahead of the European Union and is responding to tariffs with tariffs. China increased the tariff on US exports from 34% to 84% and then the US President increased the tariff from 104% to 125%. A few hours before the tariff is implemented on China, the country’s Commerce Minister has said that the ‘mutual tariff “of the US is” serious violations of the legitimate interests of all countries “. “I want to emphasize that there is no winner in the trade war and China does not want a trade war. But when the legitimate rights and interests of its people will be hurt and denied, the Chinese government will not remain silent in any way.”
Both Trump and China are now entangled in a sport that no one wants to retreat. Whoever retreats first will be considered defeated. The biggest factor in China’s favor is that the US is more dependent on China’s imports than that of China. According to the Guardian report, for Chinese President Xi, Trump’s latest threat can be only one political answer: Lao Hum is ready, the forecast firm said the founder and chief economist Diana Choileva, the founder and chief economist of the firm Enconomics. Any possibility of his retreat will be politically unstable. ”
