Economic draft in Washington: Donald Trump suspended part of the customs duties imposed on several countries for 90 days, causing a spectacular flambé to financial markets. Wall Street had a historic day on Wednesday, with a Nasdaq up 12.16%, a Dow Jones at +7.87% and oil prices that starting up.
This suspension, motivated according to Trump by “the desire to negotiate more than 75 countries”, however, excludes China, to whom the president criticizes an disrespectful behavior towards the global markets. American surcharge on Chinese products are now climbing 125%, while Beijing replies with retaliatory rights recorded at 84%.
Since the beginning of the month, the markets have been under pressure after the announcement of a wave of aggressive customs duties. Trump acknowledged having been alerted by the fall of the US bond market, adding that he “looked at the debt market” before decree this commercial Truce. A statement that reveals the direct influence of economic tensions on its decisions.
Analysts point to persistent concerns related to a possible contraction of global growth, an increase in inflation and a weakening of business profits. A nervousness that Trump tries to calm, without touching his showdown with Beijing.
