“Advanced” Chaos – Trump’s Zigzaglijn lets economists despair

US President Trump will soon want to announce new special rates in the area of ​​the semiconductor industry. “I will announce this in the course of the coming week,” said the Republican reporters during a flight in the “Air Force One” and emphasized that “a certain flexibility” was needed. Warning: From here, thought acrobatics is required …

When asked whether this flexibility also applies to certain product groups such as smartphones, Trump replied: “For some products, yes, maybe.” What exactly, he opened openly – and only pointed out to inform corrective details “in the not too distant future”. Halver guides are installed as a central part in almost all modern electronic devices. This instability is absolutely toxic to companies.

Many economists try to get the absurd zigzag line from the White House with metaphors. For example, it says: the milk in the fridge would take longer than the course requirement by the US President. Because of the substance no investments were made.

The White House had previously indicated that Trump could soon impose new taxes for certain product groups that were excluded from the extensive package of measures, which has currently been partially paused. In addition to semiconductors, the affected product groups also include medicinal products.

Exceptions are no exceptions
Trump’s statement about the semiconductor rates follows some confusion about an exception for smartphones, laptops and other important electronic products from some of the American special rates.

According to a document from the US CCBP, this relief applies from 5 April and also applies to rates from China. A total of 20 product groups and subcategories are mentioned. For American providers of computer technology this was good news because they largely made their devices in Asia – especially in China. However, this special treatment will be withdrawn soon.

In response to reporting, Trump said on Sunday that it was by no means an exception. The product groups mentioned in the document would only be moved to another “bucket” and also the “Fentanyl-Zöllen” will continue to subject 20 percent to the import from China (see the image above). These existing taxes are accused of having to accuse Trump’s dangerous synthetic drug fentanyl in the US.

Customs down, rates
Trump’s new offensive has to do with the fact that his back in Big Tech products was included as a kink for Beijing. After the CBP documentary had become known, the US President team also tried to expel the impression of another customs-political withdrawal-after Trump replaced his worldwide rate last week.

While business advisor and customs -guru Peter Navarro literally said in the NBC News broadcaster: “There are no exceptions”, and the debate as a hair split, commercial minister Howard Lutnick admitted the corresponding special cases (tweet above).

At the same time, he emphasized that what is considered to be an exception will be (possibly) taxed tomorrow. The Minister of Trump explained that new measures for semiconductors and medicines are already being prepared. Lutnick responded to the question whether the exception to smartphones, laptops and other technical devices was only temporary: “This is correct.”

Zoll Guru defends Zigzag -line
Navarro defended the government’s communicative zigzaglijn as a well -thought -out strategy: “It develops exactly as we imagined,” he said at NBC News. Numerous countries would stand in line to negotiate new trade agreements with the US – “90 deals in 90 days” are possible.

He quoted Israel, Great -Britain, the European Union, India, Japan -and initially North Korea, which he corrected to South Korea. Because dictators such as Kim Jong-un or Vladimir Putin were excluded from the customs club of Trump. He did not answer a question about the concerns of many Americans who are afraid of their pension provision (401K) and rising prices for daily goods.

Former American finance minister Larry Summers said CNN that customs policy “the worst self -inflicted wound of economic policy” has been since the Second World War.

“It’s bad for competitiveness, bad for unemployment, bad for inflation,” said Summers. The influential democrat Elizabeth Warren said: “Nobody can imagine what the rules will look like in five days, let alone in five years.” There is no customs strategy, but only “chaos and corruption”.