Trump heightens tariff threat in trade war with China

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That "could destroy market tension and volatility and drive a gap higher in risk sentiment", he said.

In a taped interview with the business channel CNBC, Trump warning, "I'm willing to go to 500", meaning he's prepared ultimately to impose tariffs on $500 billion in Chinese imports - roughly the value of all the goods Beijing shipped to the United States previous year.

"But I don't like all of this work that goes into doing what we're doing", Trump said, arguing that the Fed's hikes could disrupt economic growth.

OIL: Benchmark US crude added 10 cents to USD68.34 per barrel in electronic trading on the New York Mercantile Exchange.

Those and other Trump comments criticising Federal Reserve interest rate hikes caused the dollar to fall back in the USA on Thursday.

China and the United States have so far imposed a 25 per cent tariff on US$34 billion of each other's goods. Fielding Chen and Tom Orlik wrote in their analysis Friday that "there's a sense that the decline is in line with Beijing's wishes and - if they want - under their control".

President Trump said he may be considering placing an additional $500 billion worth of tariffs on China.

To some extent that policy lost a lot of its credibility in the reaction to the financial crisis, post 2008, and while U.S. officials have never explicitly acknowledged a desire so openly for a weaker USA dollar in the past they have also never really complained about a strong currency until recently. The company said it's being helped by its rivalry with Amazon, because some retailers are reluctant to team up with Amazon on cloud computing services while they compete with Amazon in sales.

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Musk must have realized the error of his way immediately after because he deleted the tweets, but its effects still ripple. Unsworth and to the companies I represent as leader", Musk said in a tweet .

"While we expect the (trade) dispute to be resolved before tipping the world into recession, there is a risk that the conflict gets worse before it gets better", UBS Global Wealth Management CIO Mark Haefele wrote in a note to clients.

Determined to correct this imbalance, the Trump Administration has already slapped tariffs on $34bn of Chinese products, which China met with retaliatory duties. Earlier this month, the United States also scheduled additional tariffs on $16bn of Chinese electronics and other components. Rufus Yerxa, president of the National Foreign Trade Council and formerly deputy director general of the World Trade Organization, said President Trump appears to think that America's trading partners will yield to pressure without securing any concessions in return. Mr Trump responded that he was. "Look, I'm not doing this for politics".

The comments come a day after Trump, in a CNBC interview, ripped USA trading partners including China and the European Union and said the nation needs a weak dollar. We expect some retaliatory tariffs, but in smaller amounts than the USA measures.

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 past year.

Chinese leaders have promised repeatedly to keep the yuan stable but official secrecy fuels investor jitters.

Gentex Corp (GNTX.O), which makes automatic-dimming rear view mirrors, said it expected cost increases of between $5 million and $8 million for the second half of 2018 related to its planned purchases of raw materials from China.

The Wall Street Journal noted that Friday morning's CNBC interview sent European stocks lower, with the Stoxx Europe 600 falling around 0.7pc before recovering some of its losses. The company also raised its guidance for the remainder of the year, with its cloud business helping push profits to record levels, along with its share price.

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