US President Donald Trump made dramatic policy changes and withdrew his broad tariffs on most countries except China for at least 90 days. The announcement was made by Trump after increasing the tariff on China to 125 percent, as China decided to impose 84 percent duty on all American imports. It seems that these steps, put on each other by the two largest economies, have reached a new peak in the current trade war. The White House has decided to double its pressure, as it warned the countries not to take revenge and will be rewarded.
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Why did Trump authorize a 90-day break?
On Wednesday, US President Donald Trump decided to postpon the fee (tariff) imposed on most countries for 90 days amid fears of recession in the global market. From Trump’s move, it seems that his effort is towards focusing only on China, reducing the trade conflict between the US and the rest of the countries. After this news, the global markets accelerated, although the complete details of reduction of tariffs on other countries have not yet been revealed. He said that I have authorized a 90-day break and a much less mutual tariff of 10 percent during this period, which is immediately effective. His sudden retreat on tariffs is seen as an attempt to limit the unprecedented trade war between the US and the world to a confrontation between Beijing and Washington.
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China-America collision
Earlier, China responded to the US tariff by imposing 84 percent duty on imported goods from the US, which further intensified the trade war between the two countries. The increase was done after Trump’s explosives imposed on 60 countries by Trump, which included 104 percent tariffs on China. In addition, China has also filed a lawsuit against the US under the World Trade Organization (WTO) dispute settlement mechanism after the latest increase in tariffs by the US. In response to the announcement of additional tariffs in addition to the US’s earlier mutual tariffs on Chinese goods, a spokesman for the Chinese Ministry of Commerce said that additional tariff measures by the US violate the WTO rules.
