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

Donald Trump

Donald Trump

Trump said he's willing to hit all imported goods from China with tariffs, sending USA markets sliding before the opening bell, Friday, July 20.

They also signaled an undiminished appetite for battle on multiple fronts after a week dominated by coverage of the fallout from his dealings with Russian President Vladimir Putin.

But despite Trump's comments, the Federal Reserve has long maintained that politics don't influence its decision making process.

The outbursts were another crosswind for Wall Street, which struggled to find direction and finished the day a hair's breadth in negative territory.

The US dollar went down on Friday amid President Donald Trump's criticism about the Federal Reserve's current monetary tightening.

But his comments raised alarms, including with some former Fed officials who saw in his remarks a possible effort to apply public pressure on the central bank. Chinese Commerce Ministry spokesman Gao Feng last week called those accusations "groundless" and said that the USA trade penalties contravene rules at the World Trade Organization.

Earlier this month, the United States levied tariffs on $34 billion worth of Chinese goods, prompting retaliation from China that has hit USA farmers particularly hard, including in states that Trump won in 2016.

Trump told CNBC, "I'm ready to go to 500", referring to the $505.5 billion in goods the USA imports from China each year.

Shipping containers, including those of China Shipping, a shipping conglomerate under direct administration of China'a State Council, await transportation on a rail line at the Port of Long Beach on July 12, 2018 in Long Beach, California.

Earlier today Trump threatened to unleash significant tariffs on all $500bn of Chinese imports to the US. The U.S. has thus far placed tariffs on $34 billion of Chinese products. The U.S. has a list of $200 billion worth of Chinese goods that may be slapped with levies. More than 70 percent of Republican and Republican-leaning USA adults believe increased tariffs between the United States and its trading partners will be good for the country, according to a Pew Research Center survey released late Thursday. "I want them to do well", the United States president said of China.

Trump's threat comes as the trade war with China threatens to go into overdrive.

"I'm not thrilled", the president told CNBC.

"We're down a tremendous amount", Trump said in an interview about trade imbalances with China on CNBC broadcast on Friday.

The US, he reiterated is being taken advantage of by countries like China.

In a series of tweets on Friday morning, Trump doubled down on his vocal opposition to the Fed's rate hike, complaining that the being "penalized because we are doing so well".

Since Trump took office, the Fed made a total of five rate hikes.

During the 2016 campaign, Trump said she should be "ashamed of herself" for creating a "false stock market" with low rates.

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