Wed. Aug 21st, 2019

a shy "mea culpa" of Trump before the US



The delay in the application of the tariff increase to certain Chinese products has meant the first time that the US president, Donald Trump, has publicly acknowledged that the charges could "impact" the citizens of his country, something that until now he had flatly denied .

"It is the first recognition by the Trump Administration that the president's tariffs are hurting consumers," Doug Barry, spokesman for the US-China Business Council, which encompasses companies, told Efe on Wednesday. Americans with interests in the Asian giant's market.

For the business association, this delay "seems to be motivated by the desire to avoid affecting consumers during the Christmas shopping season," a theory that Trump himself has defended in statements to journalists.

"We are doing this for the holiday season, in case some of the tariffs have an impact on American customers, which, so far, has practically had none," Trump reflected Tuesday after the announcement of the Representative Office of United States Foreign Trade (USTR).

The US government announced on Tuesday that it decided to delay until December 15 part of the increase in tariffs of 10% to Chinese products worth 300,000 million dollars that had to enter into force on September 1.

Barry, an expert in bilateral trade between the two powers, said that the uncertainty that the commercial war is causing in business confidence is more worrisome than the additional cost that it may entail for US citizens in Christmas shopping.

"Evidence of investments and even delayed hiring suggests that the conflict may have broader economic consequences, including a risk of recession," he warned.

The word "recession" appeared today in several headlines of general and specialized media in economics, as one that published The Wall Street Journal: "As the global order falls apart, the risks of recession grow."

This alarm was activated by the Wall Street parquet when opening its session on Wednesday in red, dragged by the fall in the yield of 10-year Treasury bonds below that of the 2-year bonds, which is considered a signal that a recession is coming.

Investors were set today in the state debt market, where the profitability of the 10-year Treasury bonds stood at around 1,596% and that of the 2-year bonds at 1,593%, after briefly reversing their positions. .

The reversal of the yield curve of public debt in the short and long term generates concern among investors, since the phenomenon has preceded several recessions and many consider it a sign that the economy is plummeting.

Given this situation, the #TrumpRecession label today became one of the trends of Twitter in the United States, although the White House did not rule on the stock market instability of the day.

However, the Trump administration's move to postpone the charges has also been pointed out as an act of good faith to loosen tension with China before the start of another round of bilateral negotiations next month.

"We urge both parties to return to the negotiating table without preconditions and prepared to be flexible. China needs to open its economy faster and faster, and any agreement must be subject to deadlines and enforceable," said Barry of the Council of US-China business, based in Washington.

In this regard, the expert stressed that the world trading system "depends on the two countries acting responsibly and with a sense of urgency."

. (tagsToTranslate) delay (t) tariffs (t) China (t) Trump (t) USA



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