A rebellion in full rule. They seem to have made a dent in Donald Trump the strong falls that Wall Street has lived, which have cast almost 9 billion dollars since February Refill tariff for 90 days, implied that for him tariffs are a negotiation tool. And that the true enemy to beat is China, the country in which it will focus its battle, with customs rights that rise up to 125%. The European stock markets had finished the day in red, with the Ibex giving 2.22%. The feeling was that the commercial war had become a global phenomenon. In less than 12 hours, the US and China had raised their respective tariffs: Washington imposed 104% to Beijing and China responded with a similar magnitude. In turn, the EU had launched 25% rates on 21,000 million in American goods. China treasures US treasure titles and any sale can shoot the cost of debt but turned around. Shortly after the opening of Wall Street, with the spirits for the soils in the parks, Trump said that “it’s time to buy.” Little more than three hours later, in an unexpected turn of events, its partial reverse triggered the euphoria. Wall Street went up like a rocket. The Nasdaq technological won in a few minutes more than 10%, in its best session since October 2008, to close above 12%. The S&P 500, with a rise of more than 9.5%, recovered the profits of the last year. Bill Ackman, the Wall Street financial one who had expressed doubts about Trumpist policy, thanked the president. Peter Schiff, manager in Euro Pacific, saw it opposite. “It seems to me that Trump has surrendered. When he has realized that the US had those of losing, he has sought a way to save his face.” Trump said he would not turn back with tariffs. And now he is the first to change course. How will foreign signatures invest in the US in the US of such chaos? With regard to China, the confrontation instead is intensified. Its reciprocal tariff barriers, more than 100%, are close to embargo levels. You have to understand the context. In the last twenty years there was an implicit pact between the US and China. The first bought cheap products. The second invested in his bonds. Washington had access to goods at a good price and was guaranteed its financing. But this agreement has broken. Beijing is already much more than the world factory: he is an US rival and Trump has gone into the attack. Pimco analysts doubt that there is a reversal of Trump about the tariff insists on their misinformation campaign (it ensures that China is the one that pays tariffs, when the cost is paid by the American importer). But the reality is that the commercial confrontation between the two giants is only a part of the problem and not even the most important: it only affects about 15% of their respective imports. The monetary and credit terrain is the battlefield. Beijing still treasures a huge amount of US debt titles: about 760,000 million dollars. But in a gradual way this portfolio has been reducing: it is at a minimum in 15 years. And in the market it is said that China would have sold bonds these days for about 50,000 million. “The increase in the US Treasury Bonus yield disruptions to the investor,” admitted Roberto Scholtes, head of the Singular Bank strategy. And China has more tools. It has already restricted rare earth trade, some essentials for the American defense industry, and could still devalue Yuan, to compensate for tariffs. Although this strategy could put its bank deposits at risk, it would not suffer an electoral cost (unlike Trump). The war continues without pauses.
