Expert: Expected response from China – does not want to escalate
China's response to the US tariff increase was expected and controlled – Beijing does not want unnecessary conflicts, and therefore does not escalate more than responding in kind. This is what Frédéric Cho, vice chairman of the Sweden-China Trade Council, tells TT.
– It is Trump's trade war with the whole world. China, just like other countries, is choosing to respond.
China joined the World Trade Organization (WTO) in 2001, and like the EU countries, wants trade to take place according to WTO rules and standards, Cho continues.
When it comes to trade, the Chinese are blunt and transactional, and do not let ideology influence them in the same way as the Trump administration, he continues.
China's response to the US tariff increase was expected and controlled – Beijing does not want unnecessary conflicts, and therefore does not escalate more than responding in kind. This is what Frédéric Cho, vice chairman of the Sweden-China Trade Council, tells TT.
– It is Trump's trade war with the whole world. China, just like other countries, is choosing to respond.
China joined the World Trade Organization (WTO) in 2001, and like the EU countries, wants trade to take place according to WTO rules and standards, Cho continues.
When it comes to trade, the Chinese are blunt and transactional, and do not let ideology influence them in the same way as the Trump administration, he continues.
Expert: Welcome – Trump does not seem to be completely tone deaf
Donald Trump's announcement that the high trade tariffs will be reduced to 10 percent over the next 90 days means "some relief" for the world economy. This is according to SEB's senior economist Robert Bergqvist.
- It is very welcome that Donald Trump is obviously reacting to what is happening in the world. Some have got the impression that he is completely tone deaf, but I have had a hard time believing that he would not react to what is happening now and what is being written about the tariffs, says Bergqvist.
He now believes that negotiations will be held between the USA and several other major parties to end the tariff war.
- Then we will see what these negotiations will lead to. Now we have seen, and the White House has also seen, the very serious consequences that this type of action and decision will have.
Donald Trump's announcement that the high trade tariffs will be reduced to 10 percent over the next 90 days means "some relief" for the world economy. This is according to SEB's senior economist Robert Bergqvist.
- It is very welcome that Donald Trump is obviously reacting to what is happening in the world. Some have got the impression that he is completely tone deaf, but I have had a hard time believing that he would not react to what is happening now and what is being written about the tariffs, says Bergqvist.
He now believes that negotiations will be held between the USA and several other major parties to end the tariff war.
- Then we will see what these negotiations will lead to. Now we have seen, and the White House has also seen, the very serious consequences that this type of action and decision will have.
Analysis: Who really believes that there was a plan?
The US is pausing tariffs for 90 days for all countries except China. Dagens Nyheter's Carl Johan von Seth interprets Wednesday's announcement as a retreat motivated by the market chaos – and rather the rise in market interest rates and the fall of the dollar than the collapse in the stock market.
"After days of rising concern about a crisis at the heart of the US financial system, the bulk of this week's large tariff package is now being paused," he writes.
Johan Wendel at Dagens Industri further describes it as Trump's "Russian roulette" may have seriously damaged confidence in the American economy.
"Trump's finance minister claims that all of this was according to plan. Who really believes that? And what have Donald Trump and the US really gained from this?"
Martin Blomgren at EFN draws the same conclusion.
"One explanation is more unworthy than the other. Trust is seriously damaged," he writes.
The US is pausing tariffs for 90 days for all countries except China. Dagens Nyheter's Carl Johan von Seth interprets Wednesday's announcement as a retreat motivated by the market chaos – and rather the rise in market interest rates and the fall of the dollar than the collapse in the stock market.
"After days of rising concern about a crisis at the heart of the US financial system, the bulk of this week's large tariff package is now being paused," he writes.
Johan Wendel at Dagens Industri further describes it as Trump's "Russian roulette" may have seriously damaged confidence in the American economy.
"Trump's finance minister claims that all of this was according to plan. Who really believes that? And what have Donald Trump and the US really gained from this?"
Martin Blomgren at EFN draws the same conclusion.
"One explanation is more unworthy than the other. Trust is seriously damaged," he writes.
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