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Trump's threat of tariffs on all $505bn of Chinese imports knocks markets

Trump's threat of tariffs on all $505bn of Chinese imports knocks markets

U.S. President Donald Trump said on Friday he is willing to hit all Chinese goods imported to the United States with tariffs if necessary.

"I'm ready to go 500", the Republican leader told the U.S. network CNBC, referring to the US$505.5 billion (RM2.055 trillion) in Chinese imports accepted into the United States in 2017.

For two straight days, President Donald Trump has committed a major break in American political convention by commenting on the actions of the Federal Reserve and the criticism echoes one of the worst monetary-policy mistakes in USA history.

"Our Chinese partners have told us they are hopeful that this gets resolved in a reasonable period of time, and that they want to resume normal trading, but their hands are tied too", Kimberley said.

Feroli also noted that the easiest way for Trump to bend the Fed to his political will would be to fill the Federal Reserve Board of Governors with members that agreed with a low interest rate policy or were personally connected to the president.

President Donald Trump has threatened tariffs on all Chinese goods imported by the US.

U.S. companies may find themselves less able to compete globally as import tariffs contribute to rising input costs, forcing them to raise prices or lower their profit margins.

The dollar fell and stocks lost ground on Trump's tweets.

"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".




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

Trump has ordered the Commerce Department to investigate whether auto imports pose a threat to USA national security that would justify tariffs or other trade restrictions.

Higher rates, however, strengthen the dollar against the world's currencies, which makes the United States a more expensive - and potentially less attractive - place to invest.

Many companies in the USA are opposed to the administration's use of tariffs against China, saying they risk hurting business and the economy without being likely to change behaviour.

"I don't necessarily agree with it, because he's raising interest rates ..."

Business media figures immediatly expressed alarm, noting that Trump was breaking presidential tradition by publicly revealing his opinion about the Federal Reserve, threatening the independence of the institution. US stock prices also briefly pared losses after news of his remarks.

Prior to that, President Richard Nixon put pressure on more than one Fed chief to bend to his will on setting interest rates, which is why at least one watcher says the current squabble between the White House and the Fed is nothing new.

The president's latest interest rate and dollar-focused comments came a day after he first criticized the Fed's series of rate increases.

"I am not happy about it", Trump said.

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