President Donald Trump accused China and the European Union of manipulating their currencies on Friday in searing tweets that hammered them for undermining America’s ‘competitive edge’ in the arena of trade.
He said that penalties he’s slapping on the countries are intended to help ‘recapture what was lost’ to America’s economy as a result of trade barriers.
‘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,’ he harped. ‘As usual, not a level playing field.’
Trump said the United States ‘should not be penalized because we are doing so well. Tightening now hurts all that we have done.
‘The U.S. should be allowed to recapture what was lost due to illegal currency manipulation and BAD Trade Deals. Debt coming due & we are raising rates – Really?’
Trump left Canada out of his initial rant, but circled back to the country that he’s been feuding with over trade later in a tweet that said: ‘Farmers have been on a downward trend for 15 years. The price of soybeans has fallen 50% since 5 years before the Election.
‘A big reason is bad (terrible) Trade Deals with other countries. They put on massive Tariffs and Barriers. Canada charges 275% on Dairy. Farmers will WIN!’
President Trump had earlier escalated his trade threats against China to a new level – threatening to impose tariffs of half a trillion dollars in order to counter a trade regime he says allows the U.S. to get ‘ripped off.’
‘I’m ready to go to 500,’ Trump said in an interview broadcast Friday, stoking market jitters.
Trump brushed off potential market ramifications, after earlier imposing tariffs of $50 billion.
‘Well, I actually think that’s – well, if it does, it does,’ the president told CNBC’s ‘Squawk Box.’
”I’m ready to go to 500,’ President Donald Trump said in an interview, threatening to impose half a trillion in tariffs on China if necessary
The amount would equal the amount of U.S. annual imports from China, but fails to account for U.S. exports to China.
As CNBC noted, U.S. imports from the growing economic power were $506 billion, while exports were $130 billion.
‘Look, I’m not doing this for politics,’ Trump said, similarly dismissing concerns that a potential slow-down could harm his party’s chances in the November elections.
‘I’m doing this to do this right thing for our country. We have been ripped off by China for a long time and I told that to President Xi,’ Trump said.
Trump’s trade threats caused jitters in global futures markets
‘I said, ‘How did this ever happen?’ And you know what their answer is? Because I deal with the highest echelons of China,’ Trump said.
‘You know, they think I’m doing maybe too much, but of course they’re going to think that. But for many years – and I’m not just saying Obama. I’m saying Bush, and I’m saying long before, they had nobody. And it’s very interesting because I actually asked them the question, ‘So we’re down 507 – recently – we’re down $507 billion in trade deficits. How did it happen?’ And they told me, ‘Nobody ever complained. Nobody ever talked to us,’ Trump claimed.
Trump said he didn’t want China to be ‘scared,’ when asked about comments by his former chief strategist Steve Bannon.
Bannon said the U.S. could ‘take down’ China in an economic war and added: ‘We are winning. They talk about the Chinese government coming back at us but for the first time they don’t know what to do.’
‘Yeah. I don’t want them to be scared,’ Trump responded.
‘ I want them to do well. I really like President Xi a lot, but it was very unfair, so I raised 50. We’re down 500. Now some people would say $375 billion. I’m not talking about million. I’m not talking about pennies. I’m talking about – we’re down $375 billion, but other estimates could say 507, it doesn’t matter. So it’s in between there, or it’s there. We’re down a tremendous amount. I raised 50, and they matched us. I said, ‘You don’t match us. You can’t match us because otherwise we’re always going to be behind the 8-ball,’ Trump said.
Trump top trade advisor Larry Kudlow blasted the Chinese president over the standoff.
‘The problem here is Xi. He doesn’t want to move, and they’ve offered the U.S. absolutely … no options regarding the issue of (intellectual property) theft and forced technology transfer,’ he told Axios.