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Another day, another term and one more trading ball from US President Donald Trump just before the Zumer.
The deadline for the tariff was set on August 1. The markets watched. The countries were counting. And then, directly to the north, another announcement came: 40% tariffs on trans -traded goodsNew tariffs for dozens of nations, and another reshuffle of Trump’s trading book. Everything should start next week.
If it feels familiar, it is because it is.
We’ve seen it before. In AprilTrump stunned the world markets with a hike at 10% tariffs and then pause, and then partial recovery. A July 9 The reboot was stuck at the last minute and pushed until August 1. Each time the businesses moved. Leaders called Washington. Trade lawyers worked overtime. But the element of the surprise remained.
It’s not just the wrong development of politics. This is a signature moving Trump.
His style management mixes a demonstration, brinkmanship and a firm belief in the power of unpredictability. Ads are often through social media. The timing of the shift. Pressure is being built. And if the world believes that the game book is set, Trump throws another turn.
This week Stephen Olson, Senior Researcher at ISEAS – Juos Izhak and a former US trade negotiator, said CNBC that Trump “fundamentally rewrote the rules of global trade”.
Olson further added that when the United States left the very free trade system, which it once built and led, it is unclear whether this system could still stay together.
“Do not think that this is the end of the story. Trump views it as a constant reality -show. More” transaction “or further increase in tariffs almost certainly.
This is the art of transaction revised for geopolitics. And although the tactics may seem chaotic, they brought the results – at least by Trump’s standards.
A US-Mexico Konad Agreement (USMCA) This is a great example. Trump has repeatedly threatened to get rid of the North American Free Trade Agreement (NAFTA), when Canada and Mexico agreed to tougher conditions. After a few months of tense, negotiating negotiations and even several northern calls, a deal was signed. It came with tougher rules for automotive, work and digital trade.
Just a few days before the implementation of the interviewed “release”, Trump announced Agreement on the title with the UKcalling it “a very big and exciting day.”
The message was understood: act quickly or face tariffs.
Trump’s decisions late night
Walking this week feel it is cut out of one fabric. Countries such as Thailand and Malaysia were adjusted at the last moment, while others, such as Canada, were stronger. Even the neutral Switzerland was not deprived of 39% of the tariff, despite large bilateral tension.
The terms of 40% of the punishment for transpressed goods are noticeable, given that the US and China are currently negotiating a trade transaction.
But the diplomacy in the trend carries costs. Global markets are sausage. CEO Directors in different fields – from the car uncertainty of building into one’s forecasts. Investors do not like surprises and supply chains not so fast.
There is a broader question here: can a global economy function if one of the most influential players change the rules at night?
For companies and countries, Trump’s decisions at the end of the night became its own variable. This is not just what he says. It is too when he says.
“High rates in some countries that have not reached Trump’s deal are mostly part of Trump’s terrible tactics. I suppose many will decline after negotiations. In the end, Trump’s timing is very flexible,” said Cholger, Chief Economist on Friday.
So, here we are again. Another term of Trump’s tariffs, another late evening. Companies, countries and investors remain setting up on the move, little time and even less clarity. This is not the first time and it can’t be the last.
