World stocks mixed under pressure of more United States tariffs

Lester Mason
July 21, 2018

A weaker U.S. dollar leads to higher exports.

The People's Bank of China (PBOC) is increasingly favoring a weaker currency as it would help the economy absorb shocks from trade war with the US.

The dollar's gains, meanwhile, were eroding "our competitive edge", the president said, adding that the Federal Reserve's decision to tighten monetary policy "now hurts all that we have done". Critics lined up this week to urge the administration to reject the tariffs, arguing they would raise vehicle prices, squeeze automakers by increasing the cost of imported components and invite retaliation from trading partners - and allies - like the European Union and Canada.

Trump denounced the rate hikes in an interview with CNBC, just the latest time he has strayed from the traditions normally observed by the president.

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

"I'm not doing this for politics, I'm doing this to do the right thing for our country", the president said.

'Because we go up and every time you go up they want to raise rates again.

According to the US, China uses predatory practices in a push to challenge American technological dominance - and allegedly forces American companies to hand over technology in exchange for access to the Chinese market. Its rate hikes are meant to prevent the economy from overheating and igniting high inflation.


Angela Merkel, the German chancellor who used her annual summer press conference to warn of a proposed 25% U.S. tariffs on European cars and components on national security grounds, said Junker "will be making suggestions there about how we can enter into a discussion process to avoid this".

The Fed last raised borrowing costs in June.

But, she said, "I'm not filling myself with expectations or predictions" for Juncker's trip.

USA central bankers project two more interest rate increases this year and another three in 2019. In the CNBC interview, Trump called Powell a "very good man".

The currency movements also reverberated in foreign stock markets, pressuring bourses in Tokyo, Europe and London.

"Trump has been clearly bothered by this tactic and yesterday's comments reflected his frustration at losing the battle in the trade war".

'So somebody would say, 'Oh, maybe you shouldn't say that as president.' I couldn't care less what they say because my views haven't changed, ' he told CNBC.

Other reports by Iphone Fresh

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