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The explosions are another crosswind for Wall Street, which struggled to find a direction and ended Friday, July 20, a hair in negative territory
ATOUT. In this photo, US President Donald Trump speaks to the press aboard Air Force One in flight while he travels from Andrews Common Base to Maryland, Bedminster, New Jersey, June 29, 2018. Photo by Saul Loeb / AFP
WASHINGTON DC, USA – President Donald Trump on Friday (July 20th) launched a new attack on US trading partners, claiming that the EU and China were manipulating their currencies and threatening to knock all imports from China with high tariffs.
He also expressed his appetite for the battle on several fronts after a week spent covering the fallout of his relations with Russian President Vladimir Putin.
The harsh criticisms focused on the pillars of the international economic system and underlined the break-up of Trump. set standards by openly reprimanding the Federal Reserve for raising interest rates.
The explosions were another crooked wind for Wall Street, which struggled to find the direction and ended up In a pair of tweets, Trump said that China, the European Union and others had "manipulated their currencies and their low interest rates" while the US dollar strengthened, eroding "our great competitive advantage". "
He said the tightening of the Fed's monetary policy is damaging to everything we have done. "
The Fed has raised the key rate twice this year after three increases in 2017 and two additional rate increases This year, the central bank eliminates stimulus from the economy to contain inflation. 19659006] Potential inflation could accelerate after the massive tax cuts that Trump defended last year, which increased US debt and budget deficits.] It still has said he was ready to step up his attacks on China, potentially imposing punitive tariffs on all $ 505.6 billion worth of goods imported from this nation. "19659006" "I'm ready to go to 500" Trump said in a statement, CNBC interview that was airing on Friday, "We've been ripped off by China for a long time."
The White House in June was already threatening to gradually extend US rights to Chinese imports up to 450 billion dollars. High tariffs are already in place for $ 34 billion worth of Chinese goods and a second $ 16 billion is being revised and may soon be added.
Washington is also targeting $ 200 billion in new imports. As early as September
Beijing promised to fight back dollar for dollar and accused the United States of triggering the "biggest trade war of economic history".
Combat Commercial Climbing
In the CNBC interview broadcast on Friday, Trump reiterated his assertion that the United States "profit from" on issues including trade policy.
The US-China spat is the largest and widest of several commercial fights chosen by Trump. (READ: Trump's many trade wars: a summary)
The growing share of international trade under threat – including the auto rights and auto parts currently under consideration – could hurt the global economy by disrupting trade. Manufacturing supply chains, raising prices and causing In the CNBC interview, Trump also said that he was "not happy" that the Fed plans to continue raising reference loan rates.
"I'm not happy," he said. "Because we go up and every time we go up, they want to raise rates again."
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 because of illegal currency manipulation and BAD Trade Deals, "Trump said 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 around 6.77 at the end of the day on Friday.
Despite Trump's claim, the yuan has been growing steadily so gradually in recent years, as most economists and officials say that Beijing has actually been intervening in the currency markets to prevent the currency from weakening it.
However, analysts said China may be willing to allow further depreciation
"The decline (of the yuan) of the US dollar will significantly mitigate the impact on Chinese exporters of the next round of US tariffs," Rajiv Biswas, chief economist for AFP, told AFP. Asia with IHS Markit
. Meanwhile, continued its decline against the euro and the pound sterling.
"Currency is now part of the trade war community," said Greg McKenna, chief market strategist at AxiTrader. – Rappler.com
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