Trump threatens tariffs on all US$500B of Chinese imports

President Donald Trump speaks before signing an Executive Order that establishes a National Council for the American Worker during a ceremony in the East Room of the White House in Washington. Trump said he’s willing

Trump Slams Interest Rate Hikes, Ignoring Hands-Off Tradition Toward Fed

The Washington Post says Trump broke with "longstanding practice" by criticizing the Fed, which presidents typically avoid doing "out of respect for the independence of the institution, and to avoid any hint of political influence over the nation's monetary supply". "Debt coming due & we are raising rates - Really?" he tweeted. Trump said he's willing to hit all imported goods from China with tariffs, sending USA markets sliding before the opening bell, Friday.

Trump told CNBC, "I'm ready to go to 500", referring to the $505.5 billion in goods the US imports from China each year. "Crazy times we live in, I love it".

Steep tariffs already are in place on $34 billion in Chinese goods, and a second tranche of $16 billion in products is under review and could soon be added.

The United States imported $505.5 billion of Chinese goods in 2017, but only exported $129.9 billion in goods.

In the CNBC interview broadcast Friday, Trump reiterated his claim that the United States is "being taken advantage of" on issues including trade policy. "I couldn't care less what they say, because my views haven't changed".

"I am not pleased", said Carl Tannenbaum, a former Chicago Fed official and chief economist at Northern Trust. China accused American officials of making false accusations Thursday as it fired back against a claim President Xi Jinping is blocking talks with the USA over the trade war between both nations. "But it was very unfair".

-China trade war and a host of other conflicts that Trump has ignited between the United States and key trading partners, including Canada and the European Union.

"If the election was today, and Hillary was on the ticket and Trump was on the ticket, I'd absolutely vote the same way", he tells CNBC.

"I'm not thrilled", he said. "We have been ripped off by China for a long time".

The comments follow his criticism Thursday in an interview in which he called the rate hikes a threat to the USA economy.

His comments anxious investors already grappling with the impact of a strengthening USA dollar on corporate results, and key stock indexes on Wall Street dropped at the open on Friday. "Whatever its cause, a cheaper yuan will keep China's unit labor costs in foreign currency from rising in foreign currency terms".

However, the euro, yuan and yen all strengthened against the dollar, with the USA currency on track for its worst day of July. Asked about the potential of a market downturn over his trade policies, he said: "If it does, it does". "We're in a world of firsts and tweeting about the Fed, not once, but twice, doubling down, that the president is trying to exert pressure, " said Kim Forrest, senior portfolio manager at Fort Pitt Capital Group LLC in Pittsburgh.

Latest News