Trump ready to hit all Chinese imports with tariffs

Cornelia Mascio
Luglio 20, 2018

S&P 500 futures fell by 0.3% in response to the comments and Dow Jones Industrial Average futures fell 0.4% shortly after the news. "That is versus the current tariffs on $34bn of imports and therefore points to serious escalation".

Shipping containers, including those of China Shipping, a shipping conglomerate under direct administration of China'a State Council, await transportation on a rail line at the Port of Long Beach on July 12, 2018 in Long Beach, California.

The tariffs the Trump administration has already imposed on $34 billion in Chinese imports are the outgrowth of a dispute over the predatory practices it says China has deployed to try to supplant America's global supremacy in high technology.

In congressional testimony this week, though, he expressed concern about Trump's confrontational trade policies.

"The United States should not be penalized because we are doing so well".

That phenomenon is being magnified by Trump's trade rhetoric, since fear of a global trade war has investors flocking for the historical perceived safety of the USA dollar.

"I'm not thrilled", Trump told the network in an interview excerpt aired yesterday.

After the interview, Trump reiterated criticism of planned interest-rate hikes by the Federal Reserve, saying in a Twitter post that tightening policy would diminish any USA advantage in trade and exacerbate losses from "BAD trade deals".

The most notable example of a president violating this edict independence of the Fed occurred under Richard Nixon in the 1970s.

The Fed has hiked interest rates five times since Mr. Trump took office, with the last two increases coming under Chairman Jerome Powell, whom the president picked to replace Janet Yellen.

Speaking about Fed policy in his interview with CNBC, Trump said he is "letting them do what they feel is best".

Trump's rebuke broke with more than two decades of White House tradition of avoiding comments on monetary policy out of respect for the independence of the USA central bank.

The growing share of worldwide trade under threat - including the tariffs on autos and auto parts now under consideration - has raised the prospect the escalating trade war could harm the global economy by disrupting manufacturing supply chains, raising prices and causing firms to hold off on new investments.

And in a statement, the White House noted that Trump was not intending to exert any such influence: "Of course the President respects the independence of the Fed".

Mr Trump argued that higher rates put the United States at a disadvantage and impede faster growth.

CNBC released details of the Trump interview in a story on its website Thursday. "So somebody would say, "Maybe you shouldn't say that as a president"-I couldn't care less what they say because my views haven't changed". Greenspan did lower rates 13 times over 1991-92, but slowed the pace of cuts in the latter year, much to the White House's annoyance.

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