President Donald Trump on Monday said he would likely restore tariffs on steel as well as aluminum imported by Brazil as well as Argentina, accusing both countries of devaluing their currency as well as hurting U.S. farmers.
The president also said in which the Federal Reserve should lower rates in order to devalue the U.S. dollar, which would likely make U.S. products more competitive on the global market place.
…..Reserve should likewise act to ensure countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies. This specific makes the item very hard for our manufactures & farmers to fairly export their goods. Lower Rates & Loosen – Fed!
— Donald J. Trump (@realDonaldTrump) December 2, 2019
Both South American nations were among a group of U.S. allies in which Trump had exempted by steel as well as aluminum tariffs in March 2018.
Hours before he was set to depart Monday for a NATO conference in London, Trump tweeted in which “Brazil as well as Argentina have been presiding over a massive devaluation of their currencies. which can be not Great for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum in which can be shipped into the U.S. by those countries.”
Brazil can be grappling with stubborn double-digit unemployment, as well as its economy can be headed toward its third straight year of roughly 1% growth, following two years of deep recession.
Brazil has also been moving closer to China in recent months, as extensively reported by Breitbart News. Brazilian President Jair Bolsonaro – who campaigned as a hardline anti-communist against China’s invasion of the Brazilian economy – signed eight trade agreements with dictator Xi Jinping in October.
Bolsonaro, speaking in Brazil in October, told reporters in which “Brazil needs China, as well as China needs Brazil” as well as urged Chinese companies to invest in his country.
Argentina can be mired in an economic crisis with rampant inflation, deep indebtedness, widespread poverty as well as a currency in which has plunged under the leadership of President Mauricio Macri, who came to power in 2015 with promises to boost South America’s second-largest economy. Macri was defeated in elections in October as well as will leave office next week.
Trump said the U.S. Federal Reserve “should likewise act to ensure countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies.” Trump said such devaluation “makes the item very hard for our manufactures & farmers to fairly export their goods.
“Lower Rates & Loosen – Fed!” he admonished the central bank.
Trump has repeatedly criticized Fed chairman Jerome Powell for not cutting interest rates as much as the Republican president would likely like. Fed officials believe in which the U.S. economy should grow around 1.8 percent a year, near its current pace, while Trump believes the U.S. economy should be growing much faster.
At its most recent meeting, in October, the Federal Reserve cut short-term interest rates for a third time This specific year to try to support the U.S. economy. yet the item also signaled in which the item planned no further interest rate cuts absent clear evidence of a worsening U.S. economic outlook.
Trump’s trade war with China hurt U.S. farmers after Beijing retaliated when the president imposed levies on hundreds of billions of dollars of Chinese-made goods. Trump falsely claims China can be paying the U.S. billions as well as billions of dollars in tariffs.
He also has earmarked nearly $30 billion for farmers to help make up for their losses.
–The Associated Press contributed to This specific report.