Us Trade War: The playing state as the order of Trump signs imposing new prices – but there are more delays | Money news Aitrend

Donald Trump’s trade war was difficult to follow, to say slightly.

For all threats and boastful of the American electoral campaign last year at the implementation of commerce price – and more threats – since he returned to the White House in January, the presidentThe protectionist agenda is random.

Trade partners, export -oriented companies, customs agents and even their own sales team have had a lot on their plates as the deadlines were imposed – then retracted – and the tariff numbers have tinkered.

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While the United Kingdom was the first country to obtain a kind of truce, described as an “agreement”, the vast majority of nations have managed to obtain any agreement.

Deal or not Deal, no country is making commercial terms with the United States when Trump 2.0 started.

Here, we examine which nations and the blocks are on the hook and the potential consequences, because the suspended “reciprocal” prices of Mr. Trump are preparing to take effect. This will not happen before August 7.

Why was August 1 such an important date?

To understand the current one, we must first go up the chronometer until early April.

Then, Trump proudly shown a board to the Garden Roser of the White House containing a list of countries and the prices they would immediately face in retaliation for the rates they impose on American manufacturing goods. He called it on the “Liberation Day”.

The number of prices was large and the financial markets were afraid.

A few days later, the president announced a 90 -day break in these rates for all countries, except China, to allow negotiations.

The initial deadline for July 9 was then extended on August 1. At the end of July 31, Trump signed the decree, but said the rate rates would not be triggered for additional seven days to allow orders to be fully communicated.

Since April, only eight countries or commercial blocks have concluded “transactions” to limit reciprocal prices and – in some cases – the sectoral prices already in place.

Who has concluded an agreement in the last 120 days?

THE UNITED KINGDOM,, JapanIndonesia, the European Union And South Korea are among the eight to face rates lower than what had been threatened in April.

China did not really conclude an agreement, but it no longer faces punitive prices greater than 100%.

His decision to retaliate against American samples prompted a level of truce to be agreed between the pair, while waiting for other talks.

There is a reaction against the EU on its agreement, many national leaders accusing the European Commission of giving in too easily. A large rate of 15% is to apply, against the 30% threatened, while the block is also committed to American investment and to pay natural gas produced by the United States.

Where is the United Kingdom?

We have already mentioned that the United Kingdom was the first to avoid the worst of what was threatened.

While a reference rate of 10% covers the vast majority of the goods we send to the United States, aerospace products are exempt.

Our steel sector was not subjected to prices of 50% of Trump and faced a rate of 25%. The government announced Thursday that it would not apply under a quota system.

British car exports were on a rate of 25% until the end of June, when the agreement agreed in May in May reduced to 10% as part of a similar quota arrangement which exempts the first 100,000 cars from a levy.

Who has not concluded an agreement?

Canada is one of the big names faced with a basic rate rate of 35%. This is up 25% and covers all the goods not subject to an American-mexico-Canada trade agreement which involves rules of origin.

America is its largest export market and it has long been in Trump’s eyes.

Mexico, another country deeply anchored in the American supply chain, faces a rate of 30% but received 90 additional days to conclude an agreement.

Brazil faces a rate of 50%. For India, it’s 25%.

What are the consequences?

This is where everything becomes a little woolly – for good reasons.

The trade war is unprecedented on a scale, given the worldwide nature of modern affairs.

It takes time for official statistics to make up for their delay, especially when price rates cut and change so much.

Any task of exports to the United States is a threat to business sales and economic growth-in the United States and the rest of the world. Many car manufacturers, for example, have refused to offer advice on their income and profits prospects.

Apple warned Thursday evening that American prices would add $ 1.1 billion in costs in the three months for September only.

Obstacles to businesses are never good, but the International Monetary Fund earlier this week has increased its forecast for global economic growth this year from 2.8% to 3%.

Part of this increase can be explained by transactions involving major economies, including Japan, the EU and the United Kingdom.

The United States’s growth figures have been biased by the precipitation to beat the import prices, but the most recent employment data reported a significant slowdown in hiring, with a tick upwards in the unemployment rate.

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The big risk to come?

This is the prospect of another self-inflicted injury.

The elephant in the room is inflation. Countries that impose rights to their imports oblige the beneficiary of these goods to pay the additional invoice. Do buyers swallow it or transmit it?

The latest American data contained solid evidence that price charges were now making their way in the country’s supply chains, threatening to tighten American consumers in the coming months.

This is why the American central bank refused Trump’s requests to reduce interest rates. You do not slow down the pace of price increases by making the borrowing costs cheaper.

An extended period of higher inflation would not be well lowered with American companies or voters. This is why the financial markets have followed a recent trend known as Taco, helping the stock markets to stay at record levels.

The belief is that Trump is still spraying. It may have to go back if inflation takes off.