President Donald Trump said Wednesday that he could re-impose “reciprocal” tariffs on some countries in as soon as two or three weeks, a potentially significant re-escalation of the global trade war that has already raised fears of a US and global recession. “In the end, I think what’s going to happen is, we’re going to have a great deals, and by the way, if we don’t have a deal with a company or a country, we’re going to set the tariff,” Trump said in an Oval Office ceremonty. “I’d say over the next couple of weeks, wouldn’t you say? I think so. Over the next two, three weeks. We’ll be setting the number.” Trump on April 9 paused his massive so-called reciprocal tariffs, which aren’t technically reciprocal. The reprieve was supposed to be for 90 days to allow countries to negotiate with the administration. Trump officials have said around 90 to 100 countries have offered to negotiate deals, setting a tremendously difficult task before trade negotiators to race against the clock to make new commitments. Without those negotiated deals, Trump could impose his tariffs on countries that rise as high as 50% – except for China, which the Trump administration set at an astronomical 145%. It’s not clear what new tariffs Trump will set on countries that are unable to strike a deal with the United States in the coming weeks – and whether those new tariffs will permanently supersede the paused reciprocal tariffs or merely serve as an interim tariff as negotiations continue. In the meantime, the United States maintains a 10% universal tariff on virtually every good imported to America, plus higher rates for certain goods. Trump’s back-and-forth stance on tariffs has caused incredible uncertainty for businesses and consumers. It has also shaken markets, sending stocks and US assets tumbling. Despite a two-day market rebound, the S&P 500 has still shed $7 trillion in value since hitting a record high in mid-February. Major organizations have warned about a global economic slowdown as Trump’s import levies threaten to reshape global trade and redirect flows of money around the world. China détente – maybe Even as the reciprocal tariffs on dozens of countries were paused, the tit-for-tat trade war escalated dramatically with China over the past couple months, alarming Wall Street and economists alike. Many major banks predicted the massive tariffs — as well as China’s major retaliatory tariffs on US goods — would plunge the US and global economies into a recession. US Treasury Secretary Scott Bessent on Tuesday at a private investment conference hosted by JP Morgan Chase acknowledged that the trade war with China is unsustainable and said that he expects the battle to de-escalate in the very near future, a person familiar with the matter confirmed to CNN. He said the tariffs are effectively embargoes on each nation, preventing business from taking place. Trump echoed that sentiment Wednesday. “It’s 145%. That’s very high,” Trump said. “But I haven’t brought it down. It basically means China is not doing any business with us, essentially, because it’s a very high number.” Although he has said the significant tariffs would come down soon, Bessent predicted they wouldn’t be eliminated — a notion Trump also echoed. Instead of a hard break or complete decoupling between the United States and China, Bessent told the investors Tuesday that the goal is to have a rebalancing of trade, the source told CNN. But in a separate discussion with reporters Wednesday, Bessent noted that it could take between two and three years to restore normal trade with China, a person familiar with the matter told CNN. Stocks surged on Bessent’s remarks Tuesday and continued to rise Wednesday. US stock futures were largely flat after hours on Wednesday. China responded to the Trump administration’s newfound openness to a deal with a sharply worded statement, urging America to change its approach to trade. “Our doors are open, if the US wants to talk. If a negotiated solution is truly what the U.S. wants, it should stop threatening and blackmailing China and seek dialogue based on equality, respect and mutual benefit,” Chinese Foreign Ministry Spokesperson Guo Jiakun told reporters on Wednesday, according to a transcript posted online by the Chinese government. “To keep asking for a deal while exerting extreme pressure is not the right way to deal with China and simply will not work,” he added. Although Trump Tuesday said he expected tariffs on China to “come down substantially,” on Wednesday he said he wouldn’t wait around forever for a deal from any country — including China. In a matter of weeks, he said, his administration could impose those tariffs again. Trump called trade with China “very one-sided” but said “we get along” and dismissed the harsh language from the Chinese government Wednesday. “I get along very well with President Xi,” Trump said “I have to hope we can make a deal, otherwise we’ll set a price.”
Trump starts the clock for new tariffs to take effect
TruthLens AI Suggested Headline:
"Trump Signals Potential Reimposition of Tariffs Amid Ongoing Trade Negotiations"
CNN
7.0
TruthLens AI Summary
President Donald Trump announced on Wednesday that he may re-impose 'reciprocal' tariffs on various countries within two to three weeks, marking a potential escalation in the ongoing global trade conflict that has raised concerns about a possible recession in the United States and beyond. During a ceremony at the Oval Office, Trump indicated that these tariffs would be set if negotiations with countries do not yield satisfactory results. Previously, on April 9, he had paused these tariffs for 90 days to allow for negotiations with approximately 90 to 100 countries, which presents a significant challenge for trade negotiators. The tariffs could reach up to 50% for certain nations, while tariffs on China have been set even higher at 145%. The uncertainty surrounding Trump's tariff policies has contributed to volatility in the markets, with the S&P 500 losing $7 trillion in value since its peak in mid-February, prompting major organizations to warn of a potential global economic slowdown as these import levies disrupt international trade dynamics.
As tensions with China continue to escalate, Trump's administration has faced criticism for its approach to trade negotiations. Treasury Secretary Scott Bessent acknowledged that the current trade war is unsustainable and expressed hope for a de-escalation in the near future. He emphasized that the significant tariffs imposed on China would likely not be eliminated entirely but would instead aim for a rebalancing of trade relations. Meanwhile, China responded to the U.S. stance by urging a shift towards negotiations based on mutual respect, cautioning against the use of threats. Trump has maintained a dual approach, expressing optimism about reaching a deal with China while simultaneously indicating that he would not hesitate to impose tariffs if negotiations fail. He described trade with China as 'very one-sided' but also noted his good relationship with President Xi, highlighting the complexities and challenges of navigating these international trade discussions.
TruthLens AI Analysis
The article highlights President Trump's announcement regarding the potential re-imposition of tariffs on various countries, signaling a possible intensification of the ongoing trade war. This development comes amidst concerns about the economic implications of such tariffs, both domestically and globally. The language used indicates a sense of urgency and unpredictability surrounding trade negotiations, which could further strain business operations and consumer confidence.
Purpose of the Article
The primary intention behind this news piece appears to be to inform the public about the imminent changes in trade policy under the Trump administration. By emphasizing the potential for significant tariffs and the uncertainty surrounding negotiations, the article aims to elicit concern from businesses and consumers about the economic ramifications. This focus on urgency may also serve to rally support for more decisive action in trade discussions.
Public Perception
The article may create a perception of instability in the economy, particularly for businesses reliant on imports. By framing the situation as a race against time for negotiators, it conveys a sense of impending economic challenges, potentially leading to anxiety among the public and stakeholders in various industries.
Information Omitted
While the article discusses the potential tariffs and their implications, it does not delve deeply into the specifics of the negotiations or the possible countermeasures that affected countries might take. This omission could lead to a skewed understanding of the broader context and the potential reactions from international partners.
Manipulative Nature
The article exhibits a moderate level of manipulative characteristics through its language and framing. The emphasis on "reciprocal" tariffs and the potential for steep increases may instigate fear or urgency, which could influence public opinion and pressure policymakers. Highlighting Trump’s assurance of “great deals” juxtaposed with the threats of tariffs may be designed to maintain a sense of control over the narrative.
Veracity of the Content
The information presented appears to be factual, reflecting a real statement made by President Trump. However, the implications drawn from these statements may carry biases that could affect public interpretation. The uncertainty surrounding the tariffs is underscored by the lack of clarity on what new tariffs might be set, which adds to the complexity of the situation.
Connections to Other News
This article could be linked to broader discussions around international trade, economic policy, and the implications of the ongoing trade war with China. It resonates with other reports focused on market fluctuations and economic forecasts, emphasizing the interconnectedness of global economies.
Market Impact
The announcement of new tariffs could have significant repercussions on the stock market and international trade. Industries that rely heavily on imports may see stock prices fluctuate as investors react to the news. Specific sectors such as manufacturing, retail, and technology may be particularly sensitive to these developments, potentially leading to volatility in relevant stocks.
Global Power Dynamics
From a geopolitical perspective, the article reflects ongoing tensions between the U.S. and other nations regarding trade practices. The implications of new tariffs could alter relationships with key trading partners, affecting the balance of power in global markets. The timing of this announcement also aligns with broader discussions about economic recovery post-pandemic, making it a relevant topic in current affairs.
Artificial Intelligence Influence
It is plausible that AI was utilized in crafting the article, particularly in analyzing trends and generating content that aligns with current economic discussions. AI models may have influenced the tone and emphasis of the piece, steering it towards a narrative that highlights urgency and concern.
In conclusion, while the article provides timely information, its framing and the language used may contribute to a heightened sense of worry about economic conditions and trade relations. The potential for manipulation lies in how this information is presented and the context in which it is interpreted.