Trump & Co. try to deal with a China that seems to NOT want play the American President’s Game…
Trump just took a step backwards on electronics…
Apple and other’s in their shoe’s get a break…
Electronics…
The Trump administration is exempting electronics such as phones, computers and other electronics from the “reciprocal” tariffs imposed on other nations, including China.
Guidance posted by Customs and Border Protection, which collects duties on imports, indicated roughly 20 products would be excluded from reciprocal tariffs. Those include smartphones, computers, routers and semiconductor chips..
The exemptions could be a break for consumers, who were facing the possibility of paying higher prices on electronics because of steep tariffs imposed on China. It’s also a win for companies like Apple, which manufactures many of its products in China….
…
US Bond Market Worries…Govt. Interest Rates
The upheaval in stocks has been grabbing all the headlines, but there is a bigger problem looming in another corner of the financial markets that rarely gets headlines: Investors are dumping U.S. government bonds.
Normally, investors rush into Treasurys at a whiff of economic chaos but now they are selling them as not even the lure of higher interest payments on the bonds is getting them to buy. The freak development has experts worried that big banks, funds and traders are losing faith in America as a stable, predictable, good place to store their money.
“The fear is the U.S. is losing its standing as the safe haven,” said George Cipolloni, a fund manager at Penn Mutual Asset Management. “Our bond market is the biggest and most stable in the world, but when you add instability, bad things can happen.”
That could be bad news for taxpayers paying interest on the ballooning U.S. debt, consumers taking out mortgages or car loans — and for President Donald Trump, who had hoped his tariff pause earlier this week would restore confidence in the markets….
…
Does Trump & Co. Know what they are doing?
Trump has insisted that China “wants to make a deal” but doesn’t “know how quite to go about it,” while leaders in Beijing have capped their latest hikes, warning that the battle risks becoming “a joke in the history of the world economy.”
The tense back-and-forth between global superpowers raises questions about Trump’s endgame and the potential economic impacts of an escalating trade war, as the president contends tariffs will reduce the trade deficit and bring manufacturing jobs back to the U.S.
“What’s the endgame here? Are we really going to reshore manufacturing based in China? And if we’re hitting every country on earth with additional tariffs, where are we going to see companies flee China to?” said Marc Busch, a professor of international business diplomacy at Georgetown University, who’s also an opinion contributor to The Hill. “They’re not coming back to the United States, so what is the endgame here?”…
Leave a Reply
You must be logged in to post a comment.