I’m ready to put tariffs on every import from China, Trump warns

Trump MAGA hat

Trump MAGA hat

"Tightening now hurts all that we have done", Trump tweeted. That episode ultimately triggered runaway inflation that took a decade to tame and required raising the Fed's policy rate above 15 per cent - more than eight times the rate's current average.

Trump also turned to Twitter to predict that US soybean farmers will emerge victorious from the US-China trade dispute.

The US$500 billion figure is about the value of Chinese goods imported into the USA past year.

"I'm willing to go to 500", he said during a taped interview with the business channel CNBC, an escalation he was prepared to makebecause it "was the right thing to do for our country" and because the rise in stocks - the S&P 500 is up 31% since his election - allowed him to pursue a more aggressive trade policy.

On Thursday, the White House was forced to release a statement saying "of course" President Trump respects the "independence" of the Federal Reserve after he blasted the Fed's decision to raise interest rates. After keeping rates at near zero for years, the Fed has hiked its benchmark interest rate seven times since 2015, and more are planned because the USA economy is heating up. "Donald Trump will be the president until at least January, 2021", said Kudlow. In the CNBC interview, Trump called Powell a "very good man". "Because we go up and every time you go up they want to raise rates again, and I don't really-I am not happy about it. But at the same time I'm letting them do what they feel is best", he said.

"I'm ready to go to 500".

The Chinese currency fell 0.5 per cent against the U.S. dollar in offshore markets to 6.8130 per dollar after Trump's comments.

Trump's comments are a break with tradition that presidents avoid commenting on the path of domestic monetary policy.


The Federal Reserve was constructed early in the 20th century to be an independent financial institution, free from the whims of politics. In his exact words, the President said he's "not thrilled" with rate hikes and worries that work done by his administration will be nullified. But rate increases also make borrowing costlier for households and companies and can weaken the pace of growth.

Trump told CNBC the hikes could damage America's ongoing economic recovery from the Great Recession.

Fears are growing over a fierce global trade war, after Trump's imposition of hefty import taxes on steel and aluminium from the EU, Canada, and Mexico, in addition to levies already on goods from China worth tens of billions of dollars that have sparked retaliatory tariffs.

Shortly after taking office, Trump withdrew from the Trans-Pacific Partnership (TPP), which he said would steal millions of jobs from Americans, while the North American Free Trade Agreement (NAFTA), signed by Canada, Mexico, and the United States, is now being renegotiated.

His remarks anxious investors already grappling with the impact of a strengthening dollar on corporate results, and key stock indexes on Wall Street dropped at the open on Friday.

Economists say state intervention in the affairs of central banks can have disastrous consequences, leading to hyper-inflation and devalued currencies.

Powell has said he believes the economy is strong enough for the Fed to continue normalizing rates, which were held at a historically low level during the recovery.

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