Where things represent Trump in the battle of global rates

Washington (AP) – After this week’s tariff whip, President Donald Trump is deciding exactly what he wants out of exchange with up to 75 nations in the coming weeks.

Trump is also discovering the next steps with China. He took advantage of his tariffs on Chinese products at 145% after China put 84% retaliation taxes in the imports of the USA. UU. While their 90 -day pause in other rates caused the stock market to recover on Wednesday, countries still face an import tax of 10% basal instead of the highest rates announced on April 2.

“There will be a transition cost and transition problems,” Trump said at the Thursday’s cabinet meeting. “But in the end it will be something beautiful.”

Kevin Hasett, director of the National Economic Council of the White House, said Thursday “News and Friends” of News that the administration already has “offers on the table of more than 15 countries.”

Hasset said the next step will be to determine exactly what Trump wants outside the negotiations.

“We have a meeting today with all the main directors where we are going to present to the President a list of how we believe that his priorities could be,” said Hasett. “And I’m sure he will have his own ideas about where to move things.”

Here is a look where the confrontation of Trump rates is:

Financial markets can tame Trump

With $ 28.9 billion in public debt, the United States government can still be indebted to investors who lend it money. Trump could be willing to cross political rivals, judges who do not like and a large number of political norms, but the bond market showed that he can moderate his plans.

Upon entering Wednesday, the interest rate in a 10 -year United States treasure note increased and approached 4.5%. That meant that the United States government was having difficulty finding possible buyers for their debt, since market participants wondered if Trump’s rates had caused foreign buyers to crack in the United States government. The highest interest rates for the government could trigger even higher mortgage rates and car loans for consumers, among other problems.

Trump said Wednesday that investors were getting “Yippy”, but after his rate pause, he described the bond market as “beautiful.”

The tariff drama is far from doing

The S&P 500 shares index jumped 9.5% after the pause was announced. But reality crawled on Thursday and the S&P 500 fell almost 3.5% as interest rates increased in the United States Treasury notes to 10 years. Of course, Trump was no longer going to put a 20% tariff on the goods of the European Union, a 24% tariff on Japan or 25% on South Korea. But those nations still have imports to imports to 10%high, the new Trump baseline as commercial conversations begin. And the tariffs faced China, enclosing the two largest economies in the world in a commercial war.

Spencer Platt through Getty Images

In addition, the commercial war has expanded with China, and 25% tariffs are still applied to imported cars, steel and aluminum. The imports of Canada and Mexico, the two largest US business partners, still face tariffs of up to 25%. And Trump still plans tariffs on pharmaceutical drugs, wood, copper and computer chips.

“While we appreciate the pause, the 10% reciprocal tariff still represents more than double the rate of leather footwear imports from countries such as Vietnam and Cambodia,” said Tom Florsheim, Weyco Group CEO, a footwear company. “Even at this level, it means a significant increase in costs that will affect consumers.”

Because tariffs are taxes paid by importers, costs are generally transmitted to consumers and companies in the form of higher prices. The Budget Laboratory at Yale University estimated Thursday that even with the pause, Trump’s current tariff regime would reduce the average available income of a home by $ 4,364.

What Trump really really wants

The secretary of the Treasury, Scott Besent, said that any commercial agreement will be “tailored”, instead of a general pact between a group of countries. Trump has established a series of complaints and objectives regarding tariffs, but Canadian and European counterparts have said that the real questions of administration officials have been vague so far.

Trump has said he wants to eliminate the $ 1.2 billion trade deficit, which means that he no longer wants the United States to amount to those exported to other nations. He also wants rates income to compensate for their tax reduction plans. The president has also said that he wants rates to bring factory work and increase workers’ salaries.

Attendees have said that Trump wants other nations to dispose of regulations and other policies, such as Europe’s added taxes, which he considers that it is a barrier to US assets, and would request that other countries change their laws. The Secretary of Commerce, Howard Lutnick, said the goal is to make other nations “respect” Trump.

Its objectives may not necessarily be in line with what other nations want.

Brendan Smialowski through Getty Images

The president of the European Commission, Ursula von der Leyen, published in X that “constantly lawyer for a zero rate agreement for zero between the European Union and the United States.”

Lori Wallach, director of the Reenshink Commerce program in the American Economic Liberties project, said Trump should be more publicly direct about what he wants outside of conversations and commercial rates.

“In the absence of transparency about what is being demanded, we could end the worst of all the results: a lot of bad agreements of special interest, all economic damages caused by tariff uncertainty and without commercial rebalancing, manufacturing capacity of the United States or jobs of goods,” he said.

A commercial war with China could cause mutual pain

The Trump administration considers that China violates the basic commercial standards with the way in which it subsidizes its manufacturers, takes intellectual property of its global competitors, suppresses wages for its workers and manipulates its currency.

The White House clarified that the 125% tariffs that Trump announced Wednesday against China were actually 145%, once their previous 20% fentanyl rates were included.

The data of the Census Office shows that the US made a commercial deficit of $ 295 billion last year with China. Because US consumers and companies are such an important client of Chinese manufacturers, Besent has said that it gives the United States an advantage in terms of inflicting pain to the economy of that nation through tariffs. Of course, China has also spent several years preparing for a commercial war.

Trump at his cabinet meeting expressed hope of being able to reach an agreement with China, although he offered no detail about what he was looking for.

“Well, we’ll see what happens to China,” Trump said. “I would love to be able to make a deal.”

Wendong Zhang, an economist from the University of Cornell, said that the Chinese economy could suffer a more pronounced blow to its gross domestic product than in the United States, but it is “will probably attach to its weapons” due to internal public support and the ability to increase consumption nationwide in the goods that no longer go to the United States.

Meanwhile, Trump will need to deal with voters who could be frustrated by the highest price of electronics and other goods resulting from commercial wars.

“Many products that American imports are predominantly from China: smartphones (73%), laptops (78%), video game consoles (87%), toys (77%) and also antibiotics for the livestock production of the US. UU.”, Zhang said in an email. “The resources of other countries will take time and result in much higher costs.”