Trump Ready to Hit All Chinese Imports with Tariffs

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"The United States should not be penalized because we are doing so well".

"In a statement following Trump's comments to CNBC, the White House said, "[Trump] considers the Federal Reserve Board Chair Jerome Powell a very good man and that he is not interfering with Fed policy decisions...

The U.S. imported $505 billion worth of goods from China in 2017, according to the U.S. Census Bureau. With those nations nearly certain to retaliate, the result could be higher prices for Americans, diminished export sales and a weaker US economy by next year.

Fed Chairman Jerome Powell, who Trump named to lead the USA central bank, said earlier this month he was not concerned about pressure from US politicians.

The late rebound triggered market speculation that authorities had intervened to prevent the yuan falling too steeply but analysts said China seems okay with further depreciation as the trade war rumbles on.

"Now I'm just saying the same thing that I would have said as a private citizen", he said, asserting that he didn't care about precedent.

Powell said in an interview last week that "nothing has been said to me publicly or privately that gives me any concern about our independence".

Senior EU officials, including the European Commission's president, Jean-Claude Juncker, are set to fly to Washington, DC, next week with the aim of persuading Trump not to levy punitive tariffs on European automobiles.

European auto shares.SXAP, sensitive to trade tensions as US officials work towards slapping tariffs on vehicle imports, fell 2.1 percent.

During more than three hours of testimony before the House panel on Wednesday, Powell heard widespread criticism from both Democrats and Republicans about the adverse effects Trump's punitive tariffs were having on businesses and farmers in their districts.

His administration is considering tariffs of as much as 20% on United States automobile imports from Europe. And those products move beyond specialized equipment to consumer goods purchased by everyday Americans.

His remarks anxious investors already grappling with the impact of a strengthening dollar on corporate results, and key stock indexes on Wall Street dropped at the open on Friday.

On July 20, Trump said that he thought the Federal Reserve raising interest rates undermined the economy.

Trump told CNBC the hikes could damage America's ongoing economic recovery from the Great Recession. "Debt coming due & we are raising rates - Really?" I don't really - I'm not happy about it.

American presidents have rarely criticized the us central bank in recent decades because the independence of the Fed is seen as important for economic stability.

In the meantime, currency traders may need to pay closer attention to the president's Twitter feed.

In the early 1970s, President Richard Nixon pressured Fed chief Arthur Burns to keep interest rates low ahead of the 1972 presidential election, when Nixon won a second term.

Most economists believe the Fed's current policy of raising interest rates is sound monetary policy given United States consumer price inflation is at an annual rate of 2.9 per cent and the unemployment rate was at four per cent in June.

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