The customs fight between the US and China goes to the next round: US President Donald Trump imposes a customs allowance of 145 percent. At the same time there is a customs break for other countries – but the United States will not protect this against the recession, experts fear.
The customs of 125 percent, which Trump announced to China on Wednesday, will be added to the existing customs of 20 percent. This results in an inch of 145 percent of Chinese goods, which now shares the White House.
China-Zölle suffer from the American economy
This has a huge impact on the economy in the US, because China is the world’s most important manufacturer of mobile phones, toys or computers – the import of all these products in the US is drastically more expensive.
But the 145 percent customs board is not even the maximum limit. There are extra taxes on certain goods such as steel, aluminum or cars. Critics think that American importers will remain at these rates because the export countries simply make their goods more expensive.
The customs break will not save the economy
While the trade war is raging with China, Trump announces exemption for other countries. On Wednesday, Trump had prescribed a 90 -day break for the rates imposed through numerous countries that have spent China. But the US economy will not save that, experts fear.
“I believe that the American economy will fall into a recession with a view to the many simultaneous shocks it had to take,” says Joe Brusuelas, chief economist of the RSM consultancy to the American broadcaster CNN.
Investor: “Epic Debacle”
The former governor of the Central Bank and former financing minister Janet Yellen also believes that the chance of recession has increased. The investor Dan Ives even describes the trade war with China as “an epic debacle” that has already caused real damage to the economy, CNN reports.
Bad mood also at fairs
With the announcement of the 145 percent rates, the good atmosphere at the fairs was also there. Trump had previously made a “purchase” recommendation, after which the stock market courses shot strongly. Critics even talk about insider trade. The investors have now received cold feet and the curve now shows considerably down again.
Trump cannot be postponed
But Trump remains: the United States takes billions of US dollars every day because its policy. “That makes us a very strong country,” the American broadcaster CNBC quotes the president. “We believe that we are in a very good shape,” Trump explains. But he also admits that he expects “transition costs and transition problems”.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
