By Michael Wilner, Los Angeles Times
Washington – President Donald Trump backed up the plans on Wednesday for a World Trade War that caused fears of economic panic and recession, a dramatic reversion after a week of market agitation that led to a historic relief in Wall Street.
But the president further increased his confrontation with China over tariffs, increasing duties in the third commercial partner of the United States to 125%. The Trump rate on foreign cars, set at 25%, remains in place.
Markets responded to Trump’s reversal with a lush increase, a fortune turn after the news of the president’s policies last week eliminated $ 7 billion in value of approximately three days of negotiation. During the night, a sale of a US bond market. UU. It added to Conerns in a spiral economic crisis.
Minutes after Trump changed the course, Dow Jones Industrial Avenge increased more than 2,900 points. The Nasdaq rose 12% in the closing bell. And the Standard & Poor’s 500 increased more than 9.5%, its highest gain since the financial crisis of 2008, but still decreased approximately 11% from its February maximum.
The change tested a temporary relief from a policy that experts warned that the global economy could be able to power, sending prices in the United States in all areas and a growing global recession.
The initial Trump administration officials explained the policy change as part of an organized plan: “This was their strategy all the time,” said Treasury Secretary Scott Besent. However, within an hour, Trump himself acknowledged that Dire Market Blowback of his ad last week forced him to go back.
The initial policy plan had countries that paid a universal rate of 10% to import their assets to the United States. Other selected countries, which the president believed that they were unfairly treated to the United States, were beaten with higher rates.
“I thought people were going out a bit out of place,” Trump told the White House journalists, explaining their decision. “They were getting to Yippy, you know, they were getting a little ypy, a little scared.
“I guess they say it was the biggest day in financial history,” Trump added. “I think the word would be flexible, you must be flexible.”
The sequence of Trump’s announcement caused some concern among the Democrats that Trump could have caused the allies that a reversal of politics was coming. On Wednesday morning, four hours before announcing the pause, Trump wrote on social networks that it was a “great time to buy.”
“Trump is creating giant fluctuations on the market with his tariffs again and outside another.” Who in the administration knew about the last Flip-Flop Trump tariff in advance? Did anyone buy or sell shares and benefit at the expense of the public? I am writing to the White House: the public has the right to know. “
Trump said he would stop its universal rate of 10% in most countries, which is customary to an effect a week ago.
But other commercial partners hit high rates on Wednesday, the tariffs that were referred to as “reciprocal” by the White House, but that actuality reflected the trade of a country with the United States, will now have those who give those Dave.
While Trump said the rate is “substantially lower” than prevently planned rates, the average income tax that had been in force before its announcement last week is still almost three times.
Meanwhile, China will be affected by another increase, with Beijing imports that now face a rate rate of 125%, after China matched the last two increases in Trump rates during the past week.
“Based on the lack of respect that China has demonstrated to the world markets, I am raising the rate loaded to China by the United States of America to 125%, immediately effective. At some point, hopefully, in the near future, China will realize that the days of cheating the US. And other countries, it is no longer more sustainable or acceptable,” Trump wrote in social late.
“On the contrary, and based on the fact that more than 75 countries have called … to negotiate a solution to the subjects that are discussed in relation to trade, commercial barriers, rates, manipulation of the currency and the non -monetary rate, and that the theses have not done, my tesos have not had, mys have not had, my songs. this.
The president’s decision to reverse the course generated a great praise of his political allies, who attributed him to execute the “art of the agreement” on last week.
Trump’s approach, wrote Bill Ackman, an administrator of multimillionaire coverage funds and supporter of the president, is that “we now understand who our favorite commercial partners are and who are the problems. China has been shown to be a bad actor.”
Besent Initable told the White House journalists that Trump’s decision to issue a pause was the result of most countries around the world refrain from issuing retaliation measures and, on the other hand, approaching the administration with sacrifices to negotiate.
“President Trump created the maximum negotiation leverage for himself,” said Besent. “Those of us who have dropped in an effect a week ago, and we have just been excessive, too rejected, for the response of mostly our allies, who want to come and negotiate in good faith.”
Karoline Leavitt, the White House press secretary, delayed the questions of the media about the president who backed away from market pressures, as well as the evaluations of the country’s main banking institutions, such as JPMorganan Wis and Goldman Country in recession.
“Many of you in the media clearly lost the art of the agreement,” Leavitt said. “Clearly did not see what President Trump is doing here.”
The White House said that Trump was providing relief to the commercial partners who refused to retaliate to his increase in the initial rate, and was intensifying with China because he taught retaliation steps.
But Trump discovered that the European Union also announced plans to retaliate with new levies only on Wednesday morning, when a journalist in the Oval office interrogated him that afternoon.
Howard Lutnick, the Secretary of Commerce, told Trump in front of journalists who did not believe that the new actions of Europe came into force.
“Oh, that is the bad moment for them. That is the bad moment,” Trump said.
“They didn’t put them,” Lutnick said. “No, they threatened. But they chose a later date, which, our expectation is that it will be later.”
“Oh, that’s fine. Because I’m slippery that hero returns,” Trump replied.
Trump and Leavitt had denied for days that Trump would consider any pause in the new commercial policy, just denying that the specific pause announced a 90 -day break in global tariffs, with China excluded from the table only two days.
That rumor led to a half of the market on Monday before the White House referred to plans such as “false news”, once again.
“We are not looking at that,” Trump told journalists at that time, asked about the perspectives of a 90 -day break.
For Wednesday, Trump said about the pause: “It’s something very positive for the world.”
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