‘Until they halve them’. Beijing: ‘Spalan door’, the bags fly
Donald Trump opens to Xi Jinping China. Assuming that it will be “very kind” during the commercial interviews, the American president hovers the possibility of a substantial reduction of the duties. A proof of beam that makes the bags fly and is positively welcomed by Beijing: the door of the negotiations “is wide open”. At the moment, however, there is no ongoing interview between the two economic superpowers. “In two-three weeks, the US will establish the duties for China”: Trump announced.
Meanwhile, the Tycoon intends to exonerate the car manufacturers from some of the highest duties he has imposed. This was reported by the Financial Times by citing some sources, according to which the president intends to exclude the components from the rates imposed on imports from China to Fenanyl, but also from those on steel and aluminum. The exemptions will leave in force at 25% duties on all cars produced abroad. Another 25%, which will start March 3, will remain in place for the components. For car manufacturers, exemption is a victory and comes after an intense lobbying action.
Washington “has not yet” spoken with China of duties, said the secretary of Treasury Scott Beesent, to whom Trump entrusted the commercial dossier. Speaking of “unsustainable” tariff levels between the two countries, Bessent highlighted the need for a “de-esclation” in order to start a clear and constructive comparison. In this perspective, the hypotheses to the study of the White House for a substantial cut of the rates to China are inserted, currently 145%, to loosen the tension. The duties – according to the rumors of the Wall Street Journal – could drop in a fork between 50 and 65%, thus coming more than halved. Another option under consideration is that of a multi -level approach, with 35% duties on the Made in China assets not considered a threat to safety and 100% for products instead considered strategic for American interests.
However, no final decision has been still taken by the president. And Besent assured that there is not or will be a unilateral reduction: “As I said many times, I don’t think none of the two parts”, that is Washington and Beijing, “believe that the current tariff levels are sustainable, so I would not be surprised if they decreased mutually”. Trump’s softened tones against China reassure the financial markets. The bags of the old continent all close in positive, with Frankfurt that rises by 3.14% and Milan of 1.42%. Wall Street is also decided, also reassured by the clarification of Trump on the president of the Fed. “I have no intention” to remove it, said the Tycoon. The financial squares see in what they consider a “U -U -y” of the president of China and on Jerome Powell a reduction of uncertainty and a possible solution to a commercial war with a global impact. While excluding a recession, the International Monetary Fund has in fact revised down the world growth estimates for rates and warned on the reduction risks that weigh on the economy. The duties are one of the topics on the G20 table of financial ministers and governors of the central banks gathered in Washington on the sidelines of the works of the fund.
The match between the United States and China is played while the White House continues dialogue with the European Union. Of the first contacts between Trump and the president of the EU Commission Ursula von der Leyen could be there on Saturday, when the two leaders are in Rome for the funeral of Pope Francis. An opportunity at least for a handshake, if not for short relaxing interviews or to fix the date of an official meeting, perhaps between May and June, a period of time that would allow to continue working to center at least a commercial agreement setting. The EU continues to hope to be able to reach an agreement but is prepared for the worst and, in a tasting of the bazooka that could use against the United States of Trump, has fined Apple for 500 million euros and destination for 200 million for violations of the regulation on digital markets dma. A move that appears as a warning to the American president, who for months has been criticizing the European Play for Big Tech for months and has gone up to define the fines imposed ‘duties’. Trump made the defense of Silicon Valley from European attacks a priority seen even his increasingly close relationships with the Tech billionaires. Mark Zuckerberg of Meta and Tim Cook of Apple were at the ceremony of his oath and helped to finance it. Their hope now is that the president can help them in their battle.
