Trump trade deals. Credit: Joshua Ascoff, Shutterstock
US President Donald Trump has declared a “complete reset” to U.S.-China relations after two countries agreed to cut tariffs for 90 days.
This raises new questions about Europe’s position in global trade.
Tariffs are reduced and war is emitted
In a joint announcement, US and Chinese officials confirmed that mutual tariffs will be significantly reduced from Wednesday, May 14th.
- US tariffs on Chinese imports fall from 145% to 30%
- China’s tariffs on US goods fall from 125% to 10%
The move has agreed to open a new round of negotiations after months of trade tensions. President Trump said he achieved a “complete reset with China” at the White House, adding that he does not think tariffs will return to previous levels. BBC.
In the US, the market responds positively
Following the announcement, Wall Street has surged:
- Nasdaq increased by more than 3.3% in early trading
- Companies importing goods from China saw an immediate rise in stock prices
BBC Business Correspondent Natalie Sherman noted that the market is trading at a similar level as it was earlier this year, recovering from a sudden drop following Trump’s “liberation day” tariff announcement in April.
But Washington hit the winning tone, but Beijing’s mood was more cautious. BBC’s Theo Leggett reported that Chinese companies are cautious and expect tariffs to return after a 90-day suspension. A Chinese industrial insider said, “30% is still high tariffs.”
Has the EU been ruled out by Trump?
The European Union appears to be on the sidelines as the US secures a continuous transaction between the UK and China now. According to PoliticsEU attempts to secure tariff relief have gone anywhere since Trump imposed a new tax in April.
- 10% baseline tariff
- 25% of cars and metals
- If trades are not reached by early July, a potential 20% increase
On Monday, May 12, Trump described the EU as “more troublesome than China,” claiming that “the European Union was formed to screw the US.”
Agathe Demaris of the European Council of Foreign Relations Politics: “Europe is not a priority for the US…and that’s a bit of a surprise to Europeans.”
Trump arrives in Saudi Arabia
Today, May 13th, Trump made his landfall in Riyadh to begin his three-day Middle East tour. He was greeted by Crown Prince Mohammed bin Salman, architect of Vision 2030, a controversial economic reform project in Saudi Arabia. Sky News.
The conference could spark global interest not only due to investment relations, but also due to MBS’s past involvement in the murder of journalist Jamal Khashoggi, which sparked international condemnation.
What is Europe now?
Trump has made prominent deals with both his enemy and allies, but the EU is still waiting. Politics “Countryes like India and Japan, as well as Vietnam, are higher on the priority list than the EU,” said Josh Lipsky, senior director of the Washington-based Atlantic Council Think Tank.
If the EU cannot secure its own contracts by July, there is a risk of facing an additional 20% tariff on major exports such as cars and metals. It could damage European manufacturers, raise consumer prices and place an additional burden on political unity within the block.
Is the EU punished for its bureaucracy? Or is it just playing a long game and others chasing a quick win?
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