by Michael Snyder, The Economic Collapse Blog:
Well, isn’t this fun? News that President Trump had decided to pause some of the tariffs that he recently unveiled for 90 days sent stock prices soaring. The Dow Jones Industrial Average was up more than 2,900 points on Wednesday, and that is very good news. But not that much has actually changed, and the global trade war is still officially on. In fact, President Trump just hiked the tariff rate on Chinese imports to 125 percent…
TRUTH LIVES on at https://sgtreport.tv/
President Donald Trump on Wednesday said he was authorizing a 90-day pause in reciprocal tariffs to all countries except China, on which he was raising the levy to 125% in the latest twist of a saga that has roiled financial markets for a week. The universal 10% tariffs remain in place.
So let’s summarize what just happened.
-The universal baseline 10 percent tariffs are still in effect.
-The additional reciprocal tariffs that were recently announced have only been delayed for 3 months to allow for negotiations to take place.
-The tariff rate on products that we import from China has now been raised to a whopping 125 percent.
-Other previously announced tariffs remain in place.
As you can see, the reality of what we are facing hasn’t really changed much at all.
But headlines that boldly proclaimed that “the tariffs have been paused” sent stock prices screaming higher.
The extraordinary rally that we just witnessed really didn’t make much sense at all, but we’ll take it.
These days, any victory that we can get is a reason to celebrate.
Of course there shouldn’t have been any confusion about what Trump just announced, because what he posted on his Truth Social account was very clear. I have put the most critical parts of his post in bold so that you won’t be able to miss them…
Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable. Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!
Virtually everybody is still being hit with a 10 percent universal tariff.
And our economic war with China has just gone nuclear.
The reason why Trump raised the tariff rate on Chinese goods to 125 percent is because the Chinese just dramatically hiked the tariff rate on U.S. imports…
China said it is raising its tariffs on U.S. products to 84%, up from its previously announced 34%, after President Trump’s import duties on Chinese good went into effect today at a rate of 104%.
In addition to hitting the Chinese with a tariff rate of 125 percent, U.S. Treasury Secretary Scott Bessent is warning that President Trump is also considering removing Chinese companies from our stock exchanges…
He also said that all policy options remain open, including the possibility of removing Chinese companies from U.S. stock exchanges. “Everything’s on the table,” before adding that it will be the President Trump who will decide on this matter.
Can you imagine what would happen if Trump actually did this and then the Chinese retaliated by doing the same thing to U.S. companies?
It would be a bloodbath.
Our economy has been so deeply entangled with the Chinese economy for so many years, but now an economic death match between our two nations has begun.
If there are products from China that you wish to purchase, I would get them now while you still can.
It is being reported that Amazon has already been canceling orders for products that are imported from China…
Read More @ TheEconomicCollapseBlog.com
Originally Posted at https://www.sgtreport.com