Despite the close relationship that brings together Israeli Prime Minister Benjamin Netanyahu, US President Donald Trump, this did not intercede for Israel in escaping the repercussions of the customs storm launched by the White House.
In its report, Bloomberg revealed that Netanyahu failed to secure an exemption from American drawings, in a sign that analysts considered “worrying” and a firm message even for close allies.
Trump has imposed comprehensive customs definitions that included most of the world, in some cases, in some cases, such as what happened with China.
Israel was not an exception, as the fees affected it by 17%, despite extensive diplomatic attempts to avoid them.
No exceptions even for friends
Trump refused, according to the report, to grant Israel exceptions despite its announcement a few days ago to reduce customs duties on the goods imported from the United States to zero, in an attempt to absorb American anger and avoid economic sanctions.
Bloomberg’s analysts described this rejection as a “warning sign” for the rest of the traditional allies of Washington, that “the era of preferential treatment has been over”, and that the new trade policy is based on pure interests, not on the basis of strategic alliances.
China is preparing for a “long battle”
On the other hand, China promised to respond to the American customs threats, as the Chinese Ministry of Commerce said, “The threat of the United States to increase the fees on China is wrong,” adding: “If Washington insists on its position, Beijing will fight the battle to the end.”
China plans to tighten restrictions on exports of some strategic products, such as rare minerals, in a move that may affect global supply chains in the technology and renewable energy sectors. Chinese reports also indicated the possibility of banning American films and imposing fees on agricultural products, as part of retaliatory measures under study.
It is noteworthy that the American president has not made any contact with his Chinese counterpart, Xi Jinping, since his return to the White House, which Bloomberg described it as the longest interruption in communication between the heads of the two countries in 20 years. The official newspaper of the Chinese Communist Party also published an editorial, in which it was “Beijing” no longer related to the delusions of reaching an agreement. “
Warnings of global recession
The Bloomberg report indicates that US measures not only threaten China, but also strike Washington’s allies as well, as in the case of Israel. Customs decisions coincided with warnings of the American economy entering a recession, expectations for the slowdown in global growth and the return of the ghost of “inflationary stagnation”.
Economic analyst at the Societe General Bank, Michelle Lam, said: China’s speech is clear and strong, and if Trump does not retreat, investors must prepare for the stage of commercial disengagement between the two countries.
