UNITED States President, Donald Trump, has announced that his administration was working on “tailored deals” with trading partners, emphasising that allies such as Japan and South Korea would be given priority.
The ‘tailored deals’ come as his administration’s tariffs on several countries took effect on Wednesday, April 8, including massive 104 per cent duties on Chinese goods.
The move triggered fresh turmoil in global markets, and escalated the ongoing international trade war, fueling recession fears, and erasing trillions of dollars from the market value of major companies.
The ICIR reported that on April 2, Trump announced a 14 per cent tariff on Nigerian exports to the United States in response to Nigeria’s imposition of a 27 per cent tariff on United States exports, an imbalance that Trump claims has long disadvantaged American businesses and consumers.
He also announced the beginning of what he termed a new era of “fair trade,” vowing to “supercharge America’s industrial base” and compel foreign markets long accused of blocking United States goods to open up.
Along with the 14 per cent tariff on Nigerian exports, President Trump also introduced a broader trade policy that includes a standard 10 per cent tariff on all US imports.
According to the policy, the new tariffs, effective immediately, apply to over 50 countries, including major trade partners such as China, the European Union, India, and Japan, along with developing economies across Asia, Africa, and Latin America.
According to Reuters, since Trump announced the new tariffs last Wednesday, the stock market index has experienced its steepest decline since the index was created in the 1950s, edging closer to a bear market, defined as a drop of 20 per cent from its recent peak.
Even global benchmark bonds, typically seen as safe-haven assets, were swept up in Wednesday’s market turmoil, signaling a troubling wave of forced selling that has investors on high alert.
However, Trump has downplayed the market turmoil and sent mixed messages to investors about the longevity of the tariffs, calling them “permanent,” while claiming they’re successfully pressuring other world leaders to seek negotiations.
“We have a lot of countries coming in that want to make deals,” he said at a White House event on Tuesday afternoon. He said at a later event that he expected China to pursue an agreement as well.
China, Washington’s top economic rival but and a major trading partner, is the hardest hit, with tariffs imposed on its products since Trump returned to the White House now reaching a staggering 104 per cent.
Trump said Tuesday his government was working on “tailored deals” with trading partners, with the White House saying it would prioritise allies like Japan and South Korea.
As a result, Trump’s administration has scheduled talks with South Korea and Japan, and Italian Prime Minister Giorgia Meloni is due to visit next week.
In response to the massive 104 per cent duties on Chinese goods, on Wednesday, China pledged to take firm and effective action to protect its rights and interests.
China has vowed to resist what it considers an act of blackmail. “The U.S. continues to abuse tariffs to pressure China, We firmly oppose this and will never accept this kind of bullying,” Chinese Foreign Ministry spokesperson Lin Jian told a news conference.
Dying to mqke a deal
Trump told a dinner with fellow Republicans on Tuesday night that countries were “dying” to make a deal.
“I’m telling you, these countries are calling us up kissing my ass,” he said.
But Beijing has shown no signs of standing down, vowing to fight a trade war “to the end” and promising counter measures to defend its interests.
China’s retaliatory tariffs of 34 per cent on US goods are due to enter into force at 12:01 am local time on Thursday (1601 GMT Wednesday).
The ICIR reported the existing levies imposed in February and March, which take the cumulative tariff increase for Chinese goods during Trump’s second presidency to 104 percent.
Trump has insisted the ball was in China’s court, saying Beijing “wants to make a deal, badly, but they don’t know how to get it started.”
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues.