Trump slams currency manipulation by Brussels & Beijing
- Author: David Armstrong Jul 21, 2018,
Jul 21, 2018, 2:36
"I'm ready to go 500", the Republican leader told CNBC, referring to the $505.5 billion in Chinese imports into the United States in 2017.
Earlier today, Mr Trump tweeted: "China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S.is raising rates while the dollars gets stronger and stronger with each passing day - taking away our big competitive edge".
But falling prices and lower sales would hurt USA soybean farmers, it warns, pointing out that US prices have fallen by 18 percent from May to early July, to their lowest this year.
The People's Bank of China set the Chinese currency's central parity rate to 0.9 percent weaker against the dollar on Friday.
President Donald Trump on Friday attacked China and the European Union for keeping their currencies artificially low to gain a trade advantage, while again blasting the Federal Reserve for raising interest rates. And last week, the administration announced plans for yet more tariffs on $200 billion worth of additional Chinese imports.
"I am not happy about it", Trump said. However, such a maneuver risks reigniting an outflow of capital that Beijing has spent months trying to halt.
With trade tensions rising, so is the pushback from American business that fear potentially devastating consequences, not only from China but also from Europe, Canada and other countries in Asia.
Along with pressing Chinese leaders to shrink the deficit, Trump's administration has accused China of engaging in unfair trade practices by forcing American investors to turn over technologies to Chinese firms.
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".
"Automobiles - that's the 800-pound gorilla", Brookings' Dollar said. Still, he was clear on his belief that the move by Jerome Powell, the chairman of the Federal Reserve, would put the U.S.at a disadvantage.
In an interview with CNBC yesterday, the U.S. leader also hit out at the Federal Reserve for interest rate hikes, complaining that the USA needs a weak dollar. More than 70 per cent of Republican and Republican-leaning USA adults believe increased tariffs between the United States and its trading partners will be good for the country, according to a Pew Research Centre survey. Tightening now hurts all that we have done.
Hoping to keep a lid on inflation as the world's largest economy gathers pace, the Fed has raised its benchmark lending rate seven times since 2015 and expects two more rate hikes this year. Its rate hikes are meant to prevent the economy from overheating and igniting high inflation.