President Trump, “‘Ready to Go’ With Tariffs on $500-B of Chinese Imports”
US President Donald Trump has indicated that he is willing to hit every product imported from China with tariffs.
President Trump said “I’m willing to go to 500,” referring roughly to the $505.5-B in goods imported last year from China.
The Trump Administration to date has put tariffs on $34-B of Chinese goods in a trade dispute over what it calls the nation’s predatory practices.
The RMB Yuan (CNY) dipped to a 12-month low of 6.8 to USD, off by 7.6% since mid-February.
China has retaliated with duties of its own, hitting US imports of Soybean and pork. The Trump Administration announced a 2nd possible round targeting $200-B worth of goods on 10 July.
Beijing vowed “firm and forceful measures” in response.
Beijing is targeting sectors, like agriculture, that could harm President Trump politically at home.
“I’m not doing this for politics, I’m doing this to do the right thing for our country,” President Trump said. “We have been ripped off by China for a long time.”
President Trump has ordered the US Commerce Department to investigate whether auto imports pose a threat to US national security that would justify tariffs or other trade restrictions. Earlier this year, he used national security as a justification for taxing imported steel and aluminum.
President Trump broke with a long-standing tradition at the White House and voiced displeasure about recent actions at the Fed. Both political and economic officials believe that the Fed needs to operate free of political pressure from the White House to properly manage interest rate policy.
Last month, the Fed raised its benchmark rate for a 2nd time this year and projected 2 more increases in Y 2018. Its rate hikes are meant to prevent the economy from overheating and igniting high inflation. But rate increases also make borrowing costlier for households and companies and can weaken the pace of growth. In particular, the Fed’s most recent rate hikes could dilute some of the benefit of the tax cuts President Trump signed into law last year.
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