Trump accuses China, EU of currency manipulation, slams Fed

Trump accuses China, EU of currency manipulation, slams Fed

Trump accuses China, EU of currency manipulation, slams Fed

"I'm ready to go to 500", the president declared in an interview with CNBC's Joe Kernen.

After the interview, Trump reiterated criticism of the Federal Reserve's planned interest-rate hikes, posting on Twitter that the tightening policy would diminish any US trade advantage and exacerbate losses from "BAD trade deals".

In his latest threat to the Asian nation, President Donald Trump has said he was ready to impose tariffs on all $500 billion worth of Chinese imports.

"I'm not doing this for politics, I'm doing this to do the right thing for our country", he said.

"We should let those who advocate trade war know that trade war is not something that can be easily won", China Consul General to Los Angeles Zhang Ping said.

Washington has already said it was targeting another $200 billion in imports which would see fresh tariffs imposed on Chinese goods by September.

A second tranche of $16 billion in products is under review and could soon be added to the USA measures. It has already slapped additional taxes on U.S. soy beans and pork exports - a move created to target Trump's rural voter base.

In the CNBC interview, Mr. Trump also said he was "not happy" the Fed planned to continue raising benchmark lending rates. "He doesn't want to move, and they've offered the USA options regarding the issue of [intellectual property] theft and forced technology transfer".

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Trump has ordered Commerce to investigate whether auto imports pose a threat to US national security that would justify tariffs or other trade restrictions. President Xi Jingping "cannot lose face with his own people by giving in to the United States", Dollar said. "But it was very unfair".

He wasn't finished there either, as in a tweet storm he then blasted China and the European Union for manipulating their currencies lower in order to gain a competitive advantage.

Overnight, the United States president launched a "rare attack on America's central bankers", The Guardian says, revealing that he "wasn't happy with their plans to raise U.S. interest rates". Two more rate hikes are still expected this year; Trump's massive tax breaks have raised fears that they could accelerate inflation.

A sliding currency could help China's huge export industry cope with new USA tariffs, as it makes Chinese products cheaper for buyers who pay in dollars.

The dollar dropped against the euro as comments by US President Donald Trump risked ratcheting up trade war tensions, while stocks diverged. Earlier this month, the USA imposed tariffs on $US34 billion ($45.8 billion) of Chinese imports.

The auction is part of an attempt to encourage the use of an alternative trading currency, particularly given the high level of imports from China, which amounted to $2-billion a year ago.

Although devaluations are not unusual, most do not lead to currency wars - which begin only when several countries all try to push down the value of their currencies at once.

Giving companies access to yuan may make it easier for them to do business with China, but it's unlikely to bolster the naira much, according to Omotola Abimbola, a bond and currency analyst at Ecobank Transnational Inc. But such a maneuver could also spur an outflow of capital that Beijing has tried to stanch.

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