Trump threatens tariffs on all US$505b of Chinese imports

Lloyd Doyle
July 20, 2018

The US should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals. "If a decision is a close call, then the appearance of kowtowing to the president may bias them toward raising rates".

But Trump launched his attack first on Thursday during an interview with CNBC and continued on Friday on Twitter.

Auto tariffs would escalate global trade tension dramatically: The U.S. last year imported $192 billion in vehicles and $143 billion in auto parts - figures that dwarf last year's $29 billion in steel and $23 billion in aluminum imports.

In a taped interview with the business channel CNBC, Trump said "I'm willing to go to 500", referring roughly to the $505.5 billion in goods imported previous year from China.

President Trump on Friday took his second swipe in two days at the Federal Reserve's interest rate hikes, alleging the central bank is taking away the country's competitive advantage, which sent the US dollar lower. Powell was a governor on the Fed and has largely followed the path the Fed has been on for years, slowly raising interest rates as the economy strengthens, unemployment declines and inflation stirs.

Mr Trump has said before that he favours low interest rates, and dismissed concerns about his interference.

Trump indeed said he had 'put a very good man in, ' in reference to Powell, who succeeded Janet Yellen at the Fed.

Trump said the USA had been being taken advantage of by China for a long time.

"I am not happy about it".

Speaking about Fed policy in his interview with CNBC, Trump said he is "letting them do what they feel is best".


He added: "I'm ready to go to 500".

The White House also attempted to assuage fears of the president pressuring the Fed immediately after Trump's comments were released.

Trump's criticism of the Fed departs from the norm of recent decades of respecting the central bank's independence.

"When the President took office there were several vacancies on the Federal Reserve Board; now there is only one", Feroli said. The Fed has been carefully and gradually raising rates over the past several years to keep inflation in check and to prevent the economy from overheating.

The Fed last raised borrowing costs in June.

Trump told CNBC the hikes could damage America's ongoing economic recovery from the Great Recession.

Goods already affected by Trump's tariffs against China include batteries, trains, and ball bearings, but they could extend to more consumer goods if further tariffs are imposed.

When asked about the stock market possibly falling if the United States imposes such a large amount of duties, Trump said: "If it does, it does".

Trump has taken credit for robust United States economic performance since his election and championed December's sweeping tax cuts.

Mr Trump said increased rates had resulted in a stronger dollar which put the U.S. at a disadvantage compared with places where central banks are holding interest rates steady.

Other reports by Iphone Fresh

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