Trump says China, EU "manipulating their currencies" -- and US dollar hit

Trump says China, EU

Trump says China, EU "manipulating their currencies" -- and US dollar hit

President Donald Trump on Friday (Jul 20) launched a fresh attack on American trading partners, saying the European Union and China were manipulating their currencies, and he threatened to hit all imports from China with high tariffs.

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 past year.

"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", explained President Trump. He told CNBC's Joe Kernen, "Because we go up and every time you go up they want to raise rates again".

Trump's use of tariffs has drawn criticism from some prominent lawmakers, including some in his own party.

In excerpts of an interview with USA television network CNBC aired Thursday, Trump said a strong dollar "puts us at a disadvantage", adding that the Chinese yuan "has been dropping like a rock".

Mr Trump's comments come before the most recent round of U.S. tariffs has had time to take effect. US central bankers project two more rate increases this year and another three hikes in 2019. China accused American officials of making false accusations Thursday as it fired back against a claim President Xi Jinping is blocking talks with the USA over the trade war between both nations. "But at the same time I'm letting them do what they feel is best", he added.

Meanwhile in Brussels, EU Trade Commissioner Cecilia Malmstrom said the EU would "think out of the box" in a bid to find a solution, but she warned officials were preparing to respond with what she called "rebalancing measures" should the United States follow through with the auto tariffs.

"The Fed has often faced political pressures - from Congress, presidents, Treasury secretaries and innumerable outside groups", said Kroszner, an economics professor at the University of Chicago.

But in the CNBC interview, the president said he was seeking to do only what's fair.

Later, the White House said in a statement that Trump respects the Fed's independence and was not interfering with its policy decisions.

The Fed has raised interest rates five times since Trump took office, with two of those coming this year under the Fed chair Jerome Powell, Trump's pick to replace Janet Yellen.

Hatch took aim at tariffs imposed by Trump not only on China but also on USA allies and partners in Europe, Canada and Mexico.

But Trump launched his attack first on Thursday during an interview with CNBC and continued on Friday on Twitter.

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"No matter what the elections are, he's not going to let go of this issue", Kudlow said.

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