US President Donald Trump is nothing if not unequivocal, and he’s all-in on tariffs. He announced that no nation will be spared while talks to impose additional tariffs on China continue. His comments come amid a volatile week for global financial markets, which reacted sharply to his fluctuating statements on trade policies.
Just last week, Trump’s confusing signals on tariffs caused the Dow Jones average to roller coaster—and investors’ confidence globally—upwards of 500 points in one day. The United States has already imposed a series of tariffs on Chinese imports, based on claims that China has exploited American trade practices. While tempers will rise, it is apparent that a trade war with China has long since started.
Last week, Trump formally announced a new investigation into tariffs related to national security. This probe would be limited to the so-called hard goods, including electronic goods like semiconductors and the entirety of the electronics supply chain. This inquiry is very important for its goal of ascertaining the pernicious purport of foreign electronics on US security and economic vitality.
Until now, some electronic products from China had been exempted from Trump’s reciprocal tariffs. In fact, as he had said, these previously excluded items are starting to go through the tariff regime under a different classification.
“There was no tariff exception announced on Friday.” – Donald Trump
Despite these alterations, Trump maintains that this reclassification does not imply that countries are free from repercussions for their levies on US imports. He also stressed that the administration’s trade policy was responsible for returning manufacturing to American shores.
“What has been exposed is that we need to make products in the United States.” – Donald Trump
We are being asked to believe that the administration is both trying to protect American jobs and keep prices from going up for American consumers. Economists across the board agree that the new tariffs will undoubtedly increase prices for American buyers. This result is a direct reversal of the administration’s commitments to lower prices.
As the trade war rhetoric continues to escalate, Chinese President Xi Jinping is set to make a historic trip to Southeast Asia. Xi is landing in Hanoi today. His journey — his first as secretary — will include stops in three of the region’s largest manufacturing countries. This visit would be expected to emphasize deepening mutual economic relationship, particularly in light of continued trade tension with the United States.