Donald Trump Tariffs: Penalty of 125% to China on tariff for 90 days, what is Trump’s Mindgem?

Work with a calm mind and be happy. It seems that this thing has been used for the elders for India. India seems to be benefiting from both the strategy of starting a conversation for bilateral trade agreement with the US as well as its restraint, not to retaliate against the American tariffs. US President Donald Trump stopped his additional tariff on 75 countries including India on Wednesday, 9 April for 90 days. They will have to pay only 10 percent basic tariff by July. On the other hand, while retaliating the China’s tariff from the tariff, he put a huge tariff of 125 percent. The question is, why Donald Trump took Uteron on 75 countries including India? What is Trump’s Mindgem?

What is going on in Trump’s mind?

For several days, after emphasizing that he will maintain his aggressive tariff strategy, Trump has said that the countries that have not retaliated against the American tariff will get relief till July. The next 90 days they will have to face only 10% of the Blanket American tariff. Asked why he ordered 75 countries to give relief from tariffs, the US President told the reporters: “People were going out a little from the line. They were getting irritated.”

Actually, this ban on tariff was not only needed by other countries, but America itself is being suppressed in its pressure. The way America’s stock market has jumped up to 10 percent after the announcement of 90 days of ban, it is telling that America’s market is feeling clear the pressure of Trump’s tariff policy.

The US stock market has seen many turbulent trade days due to rapid improvement. The US government bonds are traditionally seen as one of the world’s safest financial assets. But before the tariff was banned, he also had to face dramatically selling.

It is also worth noting here that Trump has not abolished his tariff on these 75 countries, but has only banned it. That is, they have the next 90 days to make a deal on how to do business with these 75 countries. Trump told the media at the oval office that he was considering the move “for the last few days”. “We do not want to hurt those countries that do not need to hurt. And they all want to talk.”

Speaking in the National Republican Congressal Committee a day before the retreat on the tariff, Trump crossed every limit. He made fun of the tariffs affected countries and said that those countries are ready to do anything while trying to interact with him. Even said that countries are calling us, kissing my A **. It was the language of the President of the country, considered the most powerful in the world. But now there is a day later on the backfoot.

Now China and European Union seems to be working to respond to Trump’s tariff from tariff. The European Union announced 25% tariff on several US imports in the first round of retaliation. This block with 27 countries has agreed to impose recipes on € 21BN (£ 18bn) US goods. All the member countries except Hungary voted to respond.

However, Trump has taken only China on his target, which is going two steps ahead of the European Union and responding to the tariff from the tariff. China increased the tariff on US exports from 34 % to 84 % and after that the US President increased the tariff on China from 104 % to 125 %. A few hours before this tariff on China is effective, the Commerce Minister there has said that the US is “reciprocal tariff” “a serious violation of the legitimate interests of all countries”. “I want to emphasize that there is no winner in the trade war and China does not want a trade war. But the Chinese government will not sit silent in any way when its valid rights and interests of its people will be hurt and deprived.”

Both Trump and China are now like this Chicken is entangled in game That both do not want to move back. The one of the two who will retreat first, it will be seen to be lost, it will be considered defeated. The biggest factor in China’s favor is that America is more dependent on Chinese imports than what China depends on America.

According to The Guardian report, the forecast firm Enconomist and Chief Economist Dianomist Diana Choyleva has said that for the Chinese President Xi, Trump’s latest threat can be politically an answer politically one: Lao we are ready. Any possibility of retreat for them will be politically unstable. “

Also read: Ego, 3 point competition and face-to-face collision .. What is the ‘chicken game’ going on between Trump and China?


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