Will the Trump Card Work Against China?

145 tariff on China, but other countries get reprieve; what is Trump's game?

- DR VIJAY DARDA

There are more questions than answers as the world grapples with the economic flux created by US President Donald Trump's 'America First' policy. After imposing tariffs on 60 countries, why did he suspend implementation for 90 days? Has the pressure of the market upheaval and the protests in the US got to him? Or does he need the support of old allies like Europe in his trade war against China? Has China gotten itself entangled in the tariff war? There are many questions that come to mind but presently, remain unanswered. If this is indeed a well thought out strategy, then how effective can it really be?

Even as all 60 affected countries try to figure out their response to Trump's tariffs, he has gone ahead and announced a 90-day reprieve for all except China. A 10 per cent tariff remains in place, but that can be absorbed by most. What is more concerning is the mystery of what lies in store? What will be President Trump's next move?

To understand this, it is important to note that no laxity has been afforded to China where tariffs have been raised from 20 per cent to 145 per cent. In response, China too has retaliated with a 125 per cent increase in tariffs on US goods. A trade war has now officially begun between the two nations. China has made it clear that it will fight to the very end and not bow down to threats from America.