“Some people, including a former Trump administration official speaking to Politico, speculate that China’s threatened rare earth cut-off was more damaging to automakers and the defense industry than anyone’s letting on, and that China actually can log this one as a W; “China’s export restrictions to the United States worked. It created enough pain to compel the U.S. government to plead with the Chinese government to reverse course,” the official told Politico.”
“the deal is a tidy illustration of how President Donald Trump has conducted his global trade war. With China, Trump hiked tariffs to astronomical levels while promising those taxes (which are paid by Americans) would unleash prosperity and create jobs. Then, the White House celebrated the agreement that reduced those tariffs as “the art of the deal.” They are literally doing the meme.
But the “deal” means that imports from China will be subjected to significantly higher tariffs than when Trump took office. Those tariffs will continue to be a serious economic burden for American businesses and consumers, and the threat of even higher tariffs remains—because the “deal” only pauses those tariffs for 90 days, and because Trump’s mercurial nature means no one can really be sure what is coming next.”
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“the remaining 30 percent tariff, which is stacked on top of preexisting tariffs from Trump’s first term, “will still make for an expensive back to school and holiday season for most Americans,” Lamar said in a statement. “If freight rates spike due to the tariff-induced shipping disruptions—which will take months to unwind—we could see costs and prices creep up even further.””
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“both America and China are still worse off than they were a few months ago. Trump has used constitutionally dubious economic powers to raise and then lower tariffs, creating huge costs and even greater uncertainty.
Rather than praising the president for backing down from an insane position, as the White House believes Americans should do, the proper response to Trump’s latest tariff maneuvers is the same as it has always been: Congress must take away his tariff powers.”
“Donald Trump’s team cuts tariffs to 30 percent, while China slashes its levies to 10 percent. Now they have 90 days to do a deal.”
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“The de-escalation does not affect tariffs ranging up to 25 percent that Trump imposed on more than $300 billion worth of Chinese goods during his first term, leaving a wide range of goods with effective tariff rates of either 37.5 percent or 55 percent.”
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“It also does not roll back the 25 percent “sectoral” tariffs that Trump has imposed on autos, steel and aluminum, U.S. officials said. Some other tariff increases that President Joe Biden imposed, such as on electric vehicles, also are not affected.”
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“In a separate interview on CNBC, Bessent said the two sides may use the “Phase 1” trade deal that Trump negotiated during his first term as the “starting point” for negotiations. That pact called on China to buy an additional $200 billion worth of Chinese goods in 2020 and 2021, but Beijing fell well short of the goal.”
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“The remaining 30 percent tariff on Chinese goods from Trump’s second term reflects a 10 percent “reciprocal” baseline tariff that Trump imposed on all countries on April 2 and a 20 percent tariff that he imposed earlier this year to pressure China to do more to stop the flow of precursor chemicals that are used to make fentanyl.”
“Last month, there was a terrorist attack in India-controlled Kashmir that killed 26 tourists. Yesterday, India conducted several airstrikes on Pakistan, saying the strikes were retribution for the attack.
The strikes may not have been as successful as the Indian military had hoped. “At least two aircraft were said to have gone down in India and the Indian-controlled side of Kashmir, according to three officials, local news reports, and accounts of witnesses who had seen the debris of two,” reports The New York Times. “Pakistani military officials said that more than 20 people had been killed and dozens injured after six places were hit on the Pakistani side of Kashmir and in Punjab Province. Residents of the Indian side of Kashmir said at least 10 people had been killed in shelling from the Pakistani side since India carried out its strikes.””
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“”The scale of the strikes went far beyond New Delhi’s response to previous attacks in Kashmir it has blamed on Pakistan, including in 2019 and 2016, which some analysts said meant the risk of escalation was higher,” reports Reuters. But “the last time India and Pakistan faced off in a military confrontation, in 2019, U.S. officials detected enough movement in the nuclear arsenals of both nations to be alarmed,” reports The New York Times.
There’s also, of course, the China factor: Pakistan now gets lots of its weapons from China, whereas India is more reliant on the West; relations between India and China have soured in recent years, while China and Pakistan have gotten much closer.”
Defeating Russia in Ukraine would isolate Iran and deter both China and Russia from future aggression. China would be most deterred by a willing and strong U.S. bonded with many allies. Unfortunately, the U.S. is acting weak while at the same time damaging its alliances.
“He’s insisting on one-on-one talks with China’s leader, Xi Jinping — and this has stifled other diplomatic efforts to halt the worsening trade war between the two global powers.
The president won’t authorize White House delegates to engage with Chinese officials in Beijing about a detente, according to two former senior State Department officials and an industry official, who were granted anonymity to discuss sensitive ongoing discussions. The Senate has yet to confirm an ambassador to China; Trump has not appointed anyone else to lead talks with Beijing; and the White House isn’t reaching out to the Chinese embassy to begin discussions.
The absence of any substantial outreach has frozen meaningful communications between the two countries and threatened the likelihood of a near-term solution.”