Despite a global descent of the stock excursions, US President Donald Trump is heading for a further escalation of the trade conflict. He threatened China with additional tariffs of another 50 percent. He gave Beijing time until Tuesday to take the counter -tariffs back of 34 percent, wrote Trump on his Truth Social platform. Otherwise his new tariffs would come into force on Wednesday.
Trump continued that China had imposed the “retaliation tariffs” of 34 percent despite his warning that he would raise further tariffs if a country should take such countermeasures. In a post, Trump had previously described China as the “greatest culprit”.
The European Union continues to try de -escalation: it offers the United States an agreement to mutual cancellation of all tariffs on industrial goods. Despite Trump’s pay decisions, the European Union is ready to negotiate, said EU Commission President Ursula von der Leyen in Brussels.
Trump’s course ensures uncertainty worldwide. The markets are under pressure. US Federal Research chief Jerome Powell recently warned of increasing inflation and slowed down economic growth for the United States.
Börsen further in deep flight worldwide
The sale on the German stock market continues. With a minus of 4.13 percent to 19,789.62 points, the leading index Dax was able to at least clearly contain its loss of over ten percent at the start. Nevertheless, it was the third deep red trade day in a row – the price gains of up to 18 percent since the beginning of the year are history.
In the afternoon, the DAX was temporarily turned into the plus. The relaxation, triggered by a media report about a possible 90-day customs break, was only short-term.
The White House in Washington immediately spoke of a falconer. There were also other losses in New York: the leading index Dow Jones Industrial was 2.8 percent lower at the end of the European IPO, the technology -heavy Nasdaq 100 lost 1.7 percent.
White house mentions possible suspension fake news
The White House clearly rejected speculation about a possible suspension of the US customs package. A government representative spoke of “fake news”. After the first part of Trump’s huge customs package came into force, further measures are to follow on Wednesday.
The plan is again significantly higher tariffs for countries with which the United States have a particularly large trade deficit from the government’s point of view. This includes China and the EU.
Trump was unimpressed by the Börsental trip to the outside. He wrote that the prices for oil and food had dropped – there was also “no inflation”. According to experts, the fallen oil prices are rather expression of growing fear of recession and thus declining demand. In addition, economists expect the new tariffs to increase food prices in the United States.
Preparations of the EU for countermeasures
Von der Leyen made it clear that the EU continues to prepare possible countermeasures in the event of a failure of negotiations in addition to its efforts to negotiate with the United States. This was also the subject of consultations by the EU Minister of Trade in Luxembourg.
EU trade commissioner Maros Sefcovic said after the meeting with the responsible ministers of the Member States that Plan A was on for negotiations. Plan B with a determined reaction remains in the hindquarters. “Our goal is not to escalate, but to negotiate.”
The trade commissioner announced that the first retaliation measures for the US tariffs announced a month ago should be put into force on steel and aluminum imports on Wednesday. They are about reintroducing EU special tariffs on US products such as jeans, bourbon whiskey, motorcycles and peanut butter. Further possible countermeasures in response to the latest customs package are being prepared.
The executive Federal Minister of Economics Robert Habeck warned the United States about the perseverance of the Europeans. “We can get through this conflict for a very long time if we are forced to get through it,” said the Greens politician. The pressure is now with the Americans.
As an explanation, Habeck said that the United States may be heading for a recession – with high inflation. “This is actually a toxic mix for every open society. They will see that, and they won’t endure it for long,” he said.
Foreign trade association: “The trade war is sparked.”
The customs dispute also overlaps the positive February balance of German exporters. The upward should not be wrong, says Dirk Jandura, President of the Federal Association of Wholesale, Foreign Trade, Services (BGA): “The trade war is sparked.”
In particular for the exporting nation Germany are increasing tariffs. “If, contrary to expectations, negotiations do not do anything at all, there is a risk of recession again this year,” warned Commerzbank chief economist Jörg Krämer. It would be the third year in a row for Europe’s largest economy without economic growth.
There are 185 trading partners on the list presented by Trump, for whom significantly higher import duties. The United States wants to take imports from the European Union countries with 20 percent inch.
Trump wants to correct alleged trade weights with tariffs and move production to the USA. At the same time, customs revenues should serve to at least partially counter its expensive election promise of large tax cuts.
