The Secretary of the United States Treasury (USA), Scott Besent, said Tuesday that President Donald Trump is creating “strategic uncertainty” in commercial negotiations, according to Reuters.
Key points
“The opening of uncertainty will be reduced.”
“We want tariff income and long -term agreements.”
“I will talk to at least 17 partners in the coming weeks.”
“There is a good possibility that we see tax relief in the Tax Law.”
“Tariff income could be used for fiscal relief.”
“Over time, we will see that Chinese tariffs are not sustainable to China.”
“We do not anticipate clashes in the supply chain.”
“Asia’s business partners have been the most open.”
“We could see some Indian ads.”
“We could see how the contours of the agreement with South Korea are being formed.”
“We had substantial conversations with Japan.”
Market reaction
These comments do not seem to have a remarkable impact on the performance of the US dollar (USD). At the time of the publication, the USD index rose 0.15% in the day to 99.08.
Commercial War between the US and China Faqs
In general terms, “Trade War” is a commercial war, an economic conflict between two or more countries due to the extreme protectionism of one of the parties. It implies the creation of commercial barriers, such as tariffs, which are in counterbarreras, increasing import costs and, therefore, the cost of life.
An economic conflict between the United States (USA) and China began in early 2018, when President Donald Trump established commercial barriers against China, claiming unfair commercial practices and theft of intellectual property by the Asian giant. China took retaliation measures, imposing tariffs on multiple American products, such as cars and soybeans. The tensions climbed until the two countries signed the Phase one trade agreement between the US and China in January 2020. The agreement required structural reforms and other changes in China’s economic and commercial regime and intended to restore stability and confidence between the two nations. Coronavirus pandemia diverted the attention of the conflict. However, it is worth mentioning that President Joe Biden, who took office after Trump, kept the tariffs and even added some additional encumbrances.
Donald Trump’s return to the White House as the 47th US president has unleashed a new wave of tensions between the two countries. During the 2024 election campaign, Trump promised to impose 60% tariff particularly in investment, and directly feeding the inflation of the consumer price index.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
