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WASHINGTON, United States (AFP) – US President Donald Trump on Friday launched a new attack on US trading partners, claiming that the EU and China were manipulating their currencies and threatening to strike all Imports from China Comments also reported an unabated fighting appetite on several fronts after a week dominated by coverage of the fallout from its relations with Russian President Vladimir Putin.
Severe Comments Bringing a New Look at the Pillars of the International Economic System stressed Trump's break with established norms by openly condemning the Federal Reserve for raising interest rates.
The explosions were another crosswind for Wall Street, which struggled to find a direction. In a pair of tweets, Trump said that China, the European Union and others had "manipulated their currencies and their interest rates down." He added that the tightening of the Fed's monetary policy "is hurting everything we have done."
The Fed raised the benchmark lending rate twice this year, after three increases in 2017 and two Other rate hikes are expected this year as the central bank is removing stimulus from the economy to contain inflation.
Potential inflation could accelerate after the massive tax cuts advocated by Trump He again stated that he was ready to step up his attacks on China, potentially imposing rights to punitive customs on the 505.6 billion US dollars of goods imported from this nation.
"I'm ready to go to 500," Trump said in a CNBC interview that was broadcast on Friday . "We have been ripped off by China for a long time."
The White House in June was already threatening to gradually extend US duties to Chinese imports of up to $ 450 billion. High tariffs are already applied to US $ 34 billion worth of Chinese goods and a second $ 16 billion US tranche is under review and may soon be added.
Washington is also targeting $ 200 billion in new imports. Beijing has pledged to hit dollar for dollar and has accused the United States of starting the "biggest trade war of economic history".
In the CNBC interview broadcast on Friday Trump reiterated his assertion that the United States "takes advantage of" on issues including trade policy.
The American-Chinese spat is the largest and widest of several commercial fights chosen by Trump.
A growing share of international trade threatened – including tariffs on automobiles and auto parts currently under study – could hurt the global economy by disrupting supply chains manufacturers, increasing prices and preventing companies from making new investments. 05] In the CNBC interview, Trump also said that he was "not happy" that the Fed plans to continue to increase benchmark loan rates.
"I'm not happy," he said. "Because we go up and every time you go up, they want to raise rates even further."
He also targeted the dollar, saying that a higher value "puts us at a disadvantage" and adding that the Chinese yuan "has"
"The United States should be allowed to recover what was lost due to illegal currency manipulation and BAD Trade Deals, "said Trump on Twitter
. After recently slipping to its lowest level in April, with the warming of the Sino-US trade conflict, the yuan's 39, is strengthened at 6.77 in the end
.] Friday .
Despite Trump's claim, the yuan has been growing steadily so gradually in recent years, as most economists and officials say that Beijing was actually intervening in the currency markets to prevent the currency from weakening it.
However, analysts said China may be willing to allow further depreciation as t as the trade war continues.
"The decline (of the yuan) of the US dollar will significantly mitigate the impact on Chinese exporters of the next round of US tariffs," said Rajiv Biswas, chief economist for Asia at IHS Markit, to AFP
. Meanwhile, continued its decline against the euro and the pound sterling.
"Money is now part of the trade war," said Greg McKenna, chief market strategist at AxiTrader
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