Trump’s chicken game over tariffs leaves world assumptions

The day before it is planned to schedule “mutual” Donald Trump tariffs, the US president looks closed in a game with high shares, and the world economy hangs in balance.

Some countries with the “worst violators” are trying to do a good with a white home to complete this game before it reaches potentially devastating culminating.

China, on the contrary, plays a different game, retribution and resistance.

Meanwhile, Trump pressed forward, even as some allies – in Congress and Wall -Ratit – I wonder if it goes too far. On Sunday, when asked what level the market fall he would endure before changing the course, he cut off that it was a “stupid question”.

So, these are all the tactics of negotiations, how do many investors and politicians hope – is it playing a longer game aimed at constant restructuring the world economy and a place in America in it? In this new world, whether it is an ally or opponent depends on whether this people give a good deal.

On Monday afternoon, Israeli Prime Minister Benjamin Netanyahu, the first world leader who visited the president since his trade announcement, tried his hand at Trump’s game. He promised that his nation – which was stabbed for the tariffs in 17% – will drop his trade barriers and move to exclude his trade surplus from the US.

“We believe that it is right,” he said. “I think Israel can serve as a model for many countries that should do the same.”

Other countries seem to be holding a similar strategy in the hope of a positive result.

On Monday morning, Japanese Prime Minister Shiger Isiber called Trump, which forced the Treasury Minister Scott Handeer to say that the United States had started negotiations with the nation to “implement the president’s vision for the new Golden Age Global Trade.”

The President of the European Commission Ursul von der Leyen said that Europe was “ready to agree” from the US, offering a mutual decline in industrial tariffs to zero – the proposal that Trump praised during comments in the oval office, saying it was still “insufficient”.

There were no such gestures from China. On Monday morning, the best economic competitor of America announced that it responds to an increase in tariffs by 34% Trump with an additional 34% of his own.

This pushed Trump to threaten another 50% of the US tariff in China if it did not recede by Tuesday.

“China has decided to highlight itself by avenge and doubled previous negative behavior,” the infant placed on X. “more than 50 countries responded both openly and positively to Donald Trump’s historical actions to create a more fair, more prosperous system of global trade.”

China’s reaction to Trump’s last step was equally stupid.

“We have repeatedly emphasized that the pressure or threat of China is not the right way to interact with us,” said Chinese Embassy, ​​Liu Pengu, BBC Partner CBS News said. “China will firmly retain its legal rights and interests.”

Such a series of reactions and repression by China and the United States turned out to be the feared investors last week when US stock indices fell in double -digit percentages.

On Monday, a growing business of business leaders opposed Trump’s tariff plan, including financiers on Wall Rate, who were strong supporters of his administration – trying to force the president to abandon the will.

Meanwhile, the American markets were ready to jump for any reason hope. When on Monday morning, social media showed that the president considered a 90 -day delay on new tariffs – perhaps related to the wrong interpretation of the comments made by Trump’s economic advisor Kevin Hassett on Fox News – the US shares. The S&P 500 index added $ 2.4 tN to the market value for about 10 minutes, just for everyone to disappear when the White House quickly denied that the president was reflecting on such a step.

Trump also closed the door on Monday afternoon, saying that he did not “look” at any delay. It was still full of tariffs.

“We will have one shot in that,” he said.

Perhaps the most involved message for investors and foreign leaders who hoping for recovery at the last minute – and departure with a ramp to stability – came from one of Trump’s best advisers, Peter Navarre.

“It’s not negotiations,” he wrote in the Financial Times, published on Monday afternoon. “President Trump is always ready to listen. But for those world leaders who, after decades, are suddenly offered to reduce tariffs – know this: this is just the beginning.”

So, when it comes to the start of broader systemic changes – what is the necessary purpose to potentially carry out the world economy?

One theory is that Trump has a plan with several of his main advisers- “Mar-A-Lago Accord”, it is called-the ultimate goal-forced trading partners in America to weaken the US dollar on the International Monetary Stock Exchange. Such a move will make US exports more accessible to foreign markets and reduce the cost of China’s large stocks.

This is a plan that pushed Trump’s advisor to Economic Advisor Stephen Miran, although he denied that this is the current administration policy.

This is only one of the possible explanations for the current pogrom in the stock market, which Trump has focused on – the one that many other well -known economists warn is risky. This is not the only one.

Since Trump has shocked the world with his broad tariff plan, the White House officials thought in the media to preach patience and to offer a choice of sometimes conflicting explanations about Trump’s global trade war. It does this to attract profits and protect the American industry – or as a negotiating tool. Tariffs are constant – or they are temporary. They will offer individual transactions with other countries – or make some large multilateral contract.

Because Trump presses the tariff rock on Wednesday without signs of retreat, it seems ready to preserve the world.