“Based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the [US Trade Representative], 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.”
-Donald Trump, president of the United States
The president said that he placed higher tariffs on China because the country showed the world’s markets a “lack of respect.” Of course, with this take the president is not taking any responsibility for his part in the cratering of world stock prices. What Trump is really saying is that China was supposed to roll over and negotiate with the U.S. Instead, each time the U.S. hiked its tariff on China, the country responded by raising tariffs on the U.S.
Trump did add, “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.”
Wall Street surged in the aftermath of the announcement with the Dow Industrial Average up 2,200. Apple added $20 to its stock price and Tesla rebounded $30. But keep in mind that this economic chaos is far from over. Not only will we soon see iPhone prices approach $4,000 and $5,000 in the U.S., this pause ends in 90 days and the chaos could start all over again.
