Trump’s Tariffs

China Considers Voluntary Export Restrictions

China may introduce voluntary export restrictions on electric cars and batteries to mitigate US trade tariffs, WSJ reports. The strategy is reminiscent of Japan’s model from the 1980s, where car companies could raise prices after reducing exports.

The aim is to reduce US pressure and pave the way for Chinese investment in the US. However, there are challenges, such as the difficulty of enforcing restrictions and President Trump’s focus on tariff revenue, the newspaper writes.

Sources: Tariff wave will be limited – sectors spared

Donald Trump’s expected tariff wave on April 2 is believed to be more targeted than the sweeping image the president has previously given, according to sources to Bloomberg.

A source says that Trump will announce reciprocal tariffs against nations or blocs, but exempt some. In addition, no sector-specific tariffs are planned to be announced.

According to the news agency, this could come as a relief to Wall Street, which is worried about how the tariffs will affect US growth, consumers and inflation.

Meanwhile, another source states that the tariffs announced on April 2 will take effect immediately and that only countries without tariffs on the US and with trade surpluses will be exempted. 

Chief economist: Misjudged Trump's pain threshold

President Donald Trump's trade policy, with new tariffs and cuts in federal spending, raises concerns about rising prices and subdued growth, according to Bloomberg.

- We and the market misjudged both the order in which the measures would be implemented and Trump's pain threshold, Wolfe Research's chief economist Stephanie Roth told the news agency.

At the same time, US economic indicators are giving conflicting signals. Hard data, such as employment and industrial production, show continued strength, while soft data – such as consumer and business surveys – point to a sharp slowdown.