A day after the President of the United States announces the most widespread tour of the rates, the countries promise to react and have the world on the edge of a commercial war. Pay all over the world is preparing on Thursday to respond to the most widespread tour of the rates so far, announced by the President of the United States Donald Trump yesterday, what the Republican called “Liberation Day”.
Trump has imposed a minimum supplement of 10% on all imports in the country, but adopted a concept of reciprocity that translated into rates of almost 50% in some cases.
The reaction of the most affected governments has been limited to the promises and communicated so far, while the authorities calibrate the answers based on the reach of the rates. However, the financial markets came out with strong losses globally, given the evaluation that the international community is already starting to “run” in an expensive commercial war.
Europe prepares the package of measures
The European Union (EU) confirmed that it prepares a package of measures compared to the 20% rate of which it is targeted, but has shown that it is open to negotiations to avoid a wider controversy. The block has already aimed at taxing the equivalent of 26 billion American products, in the wake of steel and aluminum overcrowded in March by Trump.
The president of the European Commission, Ursula von der Leyn, classified the situation as a “hard blow to the world economy”. “There seems to be no order in the disorder. No clear path through the complexity and chaos that are created as all the US commercial partners are affected,” he said, during a summit with the leaders of Central Asia in Uzbekistan.
In addition to the day before advertising, there are currently in force on Thursday 25% rates on the vehicles imported by the Americans. The German association of the automotive industry, which has the United States as the main market, asked the EU to “keep the head cold” to avoid “a climb that would have only aggravated the damage”.
Out of the European block, the United Kingdom has “a wide range of tools and will not hesitate to use them” but “remains calm and busy”, according to Business Minister Jonathan Reynolds. The United States will charge a mutual rate of 10% of the British.
China promises an answer, but does not describe the plans in detail
Another central objective of the White House, China urged the United States to “immediately cancel” the tariff offensive and promised to impose “resolutions” contracts through a declaration of the Ministry of Commerce. Beijing, however, has not detailed the plans. “There are no winners in a commercial war and there is no way out for protectionism,” says the note.
For the Asian country, 34% mutual rates will be added to existing 20%. The total of 54% approaches the 60% rate promised by Trump during the election campaign.
In Japan, the Minister of Commerce, Yoji Muto, urged Washington to give up the 24% rate applied to Asian products. The interim president of South Korea, Han Duck, recognized that a “global tariff war has become a reality”.
Experts consider aggressive rates
Hard words reflect the perception that the rates were aggressive, although there is still uncertainty about the implementation. For the strategist of Deutsche Bank Jim Reid, rates met the most pessimistic expectations.
“Overall, the size of the rates has increased the feeling of a push for the radical political reorganization by the new American administration,” wrote Reid in a relationship of investors. But “they have not increased the trust that there is an in -depth strategic implementation plan”.
The economy economist of economics in the British capital Neil Shearing has also considered the highest rates of the expected, in particular for China and other Asian countries. On the other hand, Brazil is among the “winners” to be the only objective of the minimum rate of 10%in its opinion.
“Minimum impact on the Brazilian economy”
Before the indispensable partners, the United States and Brazil became direct competitors in global trade in sectors such as agriculture and energy, DW the head of Moody analysis for Latin America, Jesse Rogers. The result is that Brazilian shipments for the largest economy in the world are relatively limited to Europe and Asia.
“Mutual rates will have a minimal impact on the Brazilian economy, since the country does not matter of most of the United States,” Rogers summarizes.
The economist sees a potential impact on the energy sector, since Brazil is an important refined oil exporter. But the American market can be easily replaced by Asia and Middle East, according to it. The effects should be more indirect. “If the rates slow down Chinese and global economies, Brazil and South America will feel the impact”, specula. In any case, the congress has approved a bill that provides for mechanisms for commercial reciprocity. President Luiz Inacio Lula Da Silva indicated that the country can resort to the World Trade Organization (OMC).
Source: Terra
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