{"id":94858,"date":"2025-05-13T06:30:39","date_gmt":"2025-05-13T14:30:39","guid":{"rendered":"https:\/\/www.cogwriter.com\/news\/?p=94858"},"modified":"2025-05-13T06:24:49","modified_gmt":"2025-05-13T14:24:49","slug":"us-pauses-increased-tariffs-on-china-inflation-rate-down-as-donald-trump-disses-european-union","status":"publish","type":"post","link":"https:\/\/www.cogwriter.com\/news\/prophecy\/us-pauses-increased-tariffs-on-china-inflation-rate-down-as-donald-trump-disses-european-union\/","title":{"rendered":"US pauses increased tariffs on China, inflation rate down, as Donald Trump disses European Union"},"content":{"rendered":"

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COGwriter<\/a><\/p>\n

Donald Trump’s tariffs and threats have resulted in a temporal pausing of increased tariffs to China:<\/p>\n

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Faisal Islam: US and China deal is significant, but not an end to the trade war<\/h2>\n

13 May 2025<\/p>\n

It’s a ceasefire on the main front of the global trade war. Global markets are rising again, and container ships can set sail across the Pacific.<\/p>\n

The progress made in US-China talks in Switzerland was far greater than expected. The prohibitive triple-digit tariffs are now down to just moderately high levels, at least for three months.<\/p>\n

The details were a little complicated, perhaps by design to enable both sides to save face.<\/p>\n

The bottom line is this: the retaliatory tit-for-tat rise in tariff rates has been cancelled, and the so-called “reciprocal” tariff rate of 34% is lowered for at least 90 days to 10%.<\/p>\n

The rates applying now are 30% from the US (which includes an existing 20% component aimed at curbing the illegal trade in fentanyl), and 10% from China. …<\/p>\n

It is not an end to the trade war, but it is a very significant truce.<\/p>\n

China was facing a 2008-style factory shutdown and potential significant unemployment. It should be averted now.<\/p>\n

At these tariff levels, prices will go up somewhat, but the trade will flow. https:\/\/www.bbc.com\/news\/articles\/cvgv5n00e0jo<\/a><\/p>\n<\/blockquote>\n

While many in the media expected major inflation rate increases for last month because of the tariffs and threats of them, that, officially, did not happen:<\/p>\n

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Inflation eased after Trump’s ‘Liberation Day’ tariffs, defying fears<\/span><\/h2>\n

May 13, 2025<\/p>\n

Consumer prices rose 2.3% in April compared to a year ago, cooling slightly from the previous month and defying fears of an inflation surge in the aftermath of President Donald Trump’s “Liberation Day” tariffs last month. The reading — which marked the lowest inflation rate since 2021 — matched economists’ expectations.<\/p>\n

Egg prices fell 10% in April compared to the previous month, offering some relief for shoppers, data showed. Still, egg prices stand much higher than they did a year ago.<\/p>\n

By contrast, gasoline prices dropped 12% over the past year. The nationwide average price of a gallon of gas is $3.15, AAA<\/a> data shows.<\/p>\n

Trump’s tariff escalation, announced April 2, set off<\/a> concern among economists and consumers about a possible burst of inflation, since importers typically pass along a share of such taxes in the form of price hikes.<\/p>\n

Government data<\/a> on Tuesday showed sharp price increases have not come to pass \u2013 at least for now. https:\/\/abcnews.go.com\/Business\/inflation-data-reveal-impacts-trumps-liberation-day-tariffs\/story?id=121706453<\/a><\/p>\n<\/blockquote>\n

The truth is that tariffs are inflationary in the sense that they cause the cost of goods to rise.<\/p>\n

The other truth is that much of the mainstream despises Donald Trump so much that they repeatedly put forth “experts” who exaggerated the likely impact of Donald Trump’s trade policies.<\/p>\n

That said, there will be many unintended consequences of Donald Trump’ tariffs, sanctions, and threats.<\/p>\n

Like the mainstream media, Donald Trump often exaggerates. Notice the following:<\/p>\n

President Trump<\/a> said the “European Union is, in many ways, nastier than China,” during a news conference on Monday.<\/p>\n

Why it matters: <\/strong>The stakes of a prolonged U.S.-EU standoff over Trump’s tariffs are high. With nearly a trillion dollars worth of trade last year, U.S. companies exported more than twice to the EU what they sent to China.<\/p>\n

Driving the news: <\/strong>During the news conference, Trump announced an executive order<\/a> aimed at cutting prescription drugs and pharmaceutical prices.<\/p>\n