Ilon Musk turned to Donald Trump to cancel large trade duties.
On Monday, Trump threatened to impose new duties of 50% on imports from China. Meanwhile, Musk posted in video X, in which the late conservative economist Milton Friedman talks about the advantages of cooperation between international trade.
Musk criticized the administration official who played a key role in developing plans for the introduction of duties – the White House of Peter Navarro in the White House, casting doubt on his qualifications:
The degree of Doctor of Economics in Harvard is bad, not very good.
Trump’s mask over the key priority of the administration was the most high -profile example of the differences between the president and one of his key adveors who invested almost $ 290 million. In support of Trump and other Republicans in last year’s elections.
What’s happening
Asian stock markets opened with a little growth on April 8, despite Trump’s promise to impose additional huge responsibilities for China. BBC writes that the Nikkei Tokyo Exchange index grew at the beginning of the auction on Tuesday by 2%. On Monday, he fell by 7.8%.
The same growth during the opening was shown by the South Korean COSPI index; Bidding in Australia also began with small stature.
On the eve of Asian stock markets, in general, they survived the greatest fall after the 2008 crisis.
Trump on Monday twice stated that he would make an additional 50% of the duty on all Chinese imports, reply that China decided to introduce symmetrical duties of 34% for goods in the United States.
If Trump fulfills this promise, Chinese imports in the United States will be charged with 104 percent of duties: 20%, which the new president imposed in March, and another 34% more than last week.
Most of the leaders of large American companies that I communicate are already in recession and believe that stock markets can be more deeply due to the trading policy of President Donald Trump, which destabilizes the world economy, ”said BlackRock Larri-Bun, General Director.
The economy is weaker now. In the coming months, growth rates will slow down only in the coming months.
Inflation will remain at a high level, so it is unlikely that this year the system of the federal reserve system will switch to several percentage rates.
As an example of business care is to talk with airlines that are already writing down a drop in demand for flights.
The US dollar will probably be weakened in the near future, and consumption will be reduced, as the population and business will adapt to the extent that you were awarded, ”he said.
Even before the market collapsed last week, Fink emphasized a high level of anxiety in the economy.
In an annual letter to investors last month, he wrote that economic uncertainty is currently “higher than when, libs in recent history.”
And in January, Fink emphasized that the most dangerous illusion today is the belief that the world has already passed the peak of inflation.
EU reaction
On Monday, April 7, European indices closed with historical after the pandemic.
The FTSE 100 index in London fell by 4.4 percent. The Stoxx Europe 600 index closed with a decrease by 4.5 percent, while all sectors are minus.
The European Commission proposed imposing mirror duties in 25% of a number of US goods in response to Donald Trump President for a post for steel and aluminum. It was written by Reuters with reference to the document that was at the disposal of the agency.
According to the document, some new duties will enter into force on May 16, others – December 1. The list covers a wide range of goods: from diamonds, eggs and dental thread – to sausages and poultry. Almonds and soybeans will also enter into force in December.
The new package of oncoming clothing will have a lesser effect than the previously declared plan for 26 billion euros ($ 28.45 billion), ”said EU Marosh Shefchovich, head of the EU trade office.
Bourbon, wine and dairy products were excluded from the original list, which was considered in March.
Then the European commission planned a 50% duty on Bourbon, which caused a strict reaction of Donald Trump – it threatened to make 200% of the EU alcoholic beverages if Europeans are aware of their intention.
This is especially alarmed by France and Italy from their large wine industry.
In addition to mirror duties, the EU has increased current protection measures for imports from April 1 – imports should be reduced by 15%. The European Commission also takes into account the possibility of introducing quotas for aluminum imports.
EU member states must vote for this proposal on April 9.
The American stock market took off and collapsed
This happened on April 7 in half an hour from fake news about the possible suspension of trade duties.
Nick’s report *Walter Bloomberg published a post that the director of the US National Economic Council, Kevin Gasset, allegedly said that Donald Trump was going to suspend responsibilities for 90 days. This was read on the air on CNBC, then it was written by Reuters.
For financial markets that have been stressed in recent days, this was enough for the indices to take off quickly. And then – they fell sharply when the White House denied the news.
It is still unclear what happened, the planned action to save one of the financial players or a simple accident from the losses. But this shows how vulnerable financial markets are associated with the customs policy of Trump.
Source: Racurs
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.