Trump extends deadline for new tariffs

Trump extends deadline for new tariffs

President Donald Trump announced on Wednesday that he could reintroduce tariffs to some countries within two to three weeks. This could be a significant escalation of the global trade war, which has already caused concern about an upcoming recession in the USA and worldwide.

Latest developments to customize

"In the end I think that we will make great agreements. However, if we do not reach an agreement with a company or country, we will set the tariffs," said Trump during a ceremony in the Oval Office. "I would say in the next two or three weeks, right? I think. In the next two or three weeks we will set the height."

break of tariffs and negotiations

On April 9, Trump paused his extensive so -called reciprocal tariffs, which are not technically referred to. This suspension should apply for 90 days to give the countries the opportunity to negotiate with the government. Trump officials have reported that around 90 to 100 countries are willing to conduct negotiations, which means an extremely difficult task for the trade negotiators to achieve new obligations within a narrow time frame.

uncertainty and economic consequences

Without these negotiated agreements, Trump could collect tariffs of up to 50 % to countries, with the exception of China, whose tariffs set the Trump administration to astronomical 145 %. It is unclear which new tariff Trump will determine against countries that do not achieve a deal in the coming weeks, and whether these new tariffs will permanently replace the paused tariffs or only serve as transition tariffs during the ongoing negotiations. In the meantime, the United States raises a universal inch of 10 % to almost all imported goods, additional higher sentences for certain goods.

market reactions

Trump's inconsistent attitude to tariffs has caused considerable uncertainty among companies and consumers and shaken the markets by falling stocks and US assets. Despite a two-day market recreation, the S&P 500 has lost $ 7 trillion in value since its record high in mid-February.

global economic forecasts

important organizations have warned of a global economic slowdown, since Trump's import taxes redesign the global trade currents and redirect the money worldwide.

trade conflict with China

Although the reciprocal tariffs were paused on dozens of countries, the trade war with China has been dramatically escalating with China, which was bothered by Wall Street and economic experts. Many large banks predicted that the massive tariffs- as well as China's considerable retaliation duties on US goods- would plunge the US and global economy into a recession.

expectations for future negotiations

US finance minister Scott Bessent recognized that the trade war with China was not sustainable and expressed the expectation that the conflict would be de-escalating in the near future. He added that the tariffs represent effective embargos for every nation and hinder business transactions.

China's reaction

china reacted to the recent openness of the Trump administration for a deal with a sharply formulated explanation and asked the United States to change its trade approach. "Our doors are open when the USA wants to speak. If a negotiated solution is really what the United States wants, it should stop threatening and blackmailing China and looking for a dialogue based on equality, respect and mutual benefit," said Guo Jiakun, spokesman for the Chinese Ministry of Foreign Affairs, on Wednesday.

Trump described the trade with China as "very one -sided", but at the same time assured that "we do well" and rejected the harsh language of the Chinese government. "I get along very well with President XI," said Trump. "I hope that we can reach a deal, otherwise we will set a price."

This article was also made up by CNN’s Elisabeth Buchwald and Samantha Waldenberg.