“We are not in a trade war with China, that war was lost many years ago by the foolish or incompetent people who represented the US." Who spoke these words? Donald Trump, hours after imposing $50 billion in new tariffs on China and less than 48 hours before demanding $100 billion in new tariffs.
The president of the United States has in fact given a mandate to US trade officials to identify new categories of goods on which to impose tariffs on imports from China, raising the bar to 100 billion dollars. Not exactly the most "suitable" way to confirm what was said - indeed tweeted, as per tradition - two days ago, given that the request could increase the level of confrontation already underway between the two world economic superpowers.
However, Trump's would be a "reaction" to the duties imposed by Beijing on American products such as soybeans, chemical agents and cars, considered by Trump "excessive and unfair". Too bad these rates were in turn a response to those established a few hours earlier by the US administration over 1.300 Chinese import products including drugs, metals, industrial chemicals, industrial robots and telecommunications equipment.
European stock exchanges react to announcements e, after yesterday's ride, there is a generalized red: Milan -0,2%, Frankfurt -0,6%, Paris – 0,5%, London – 0,2%. Futures on the S&P 500 were also negative.
The clash also has repercussions on international trade. Taking soy as an example, based on an analysis by Coldiretti, the prices of the nationally produced commodity jumped by 4 euros in just one week, reaching a maximum of 381 euros per ton in the first quotation after the announcement of Chinese duties on imports from the USA.
“The extension of the tariff war between the two giants of the world economy to agri-food products opens up unprecedented and worrying scenarios in world trade, even with the risk of anomalous inflows of products on the Community market which – Coldiretti claims – must be carefully monitored to verify the opportunity to activate, if necessary, extraordinary intervention measures”.
Trump also requested instructing his secretary of agriculture “to implement a plan to protect our farmers“, declaring, however, not to close the door to possible negotiations that lead to “free, fair and reciprocal exchanges”.
However, China does not miss a beat: after Trump's announcement, Beijing's trade minister in fact stated that he wanted to fight protectionism "at any price". From Asia they are therefore ready to respond blow by blow. It will not be a trade war - as the US president says - but we are close.
