Published: Mon, June 10, 2019
Global News | By Blake Casey

Trump Threatens China Tariffs if Xi Jinping Refuses to Meet

Trump Threatens China Tariffs if Xi Jinping Refuses to Meet

Trump again criticized the Federal Reserve Board for having raised interest rates, especially while the president said China was allowing its currency to be weakened in part to mitigate the effects of US tariffs. "You know, we're leading in everything." he said.

The president said the same strategy will work in the United States trade talks with China.

In a telephone interview broadcast on CNBC Trump said that additional tariffs on Chinese goods will go into effect immediately if China's President Xi Jinping does not attend the upcoming G20 meeting.

"Had a Democrat gotten in..., China would have caught us", he said.

Trump's broadside comes a week before the Fed meets in Washington, when it's expected to discuss whether an interest-rate cut is needed to help offset an economic slowdown caused by his trade war.

President Trump called tariffs a "beautiful thing" and credited his use of them with forcing Mexico to reach a deal with the U.S. on immigration and predicted the duties will also pressure China to give in on trade. And we're going to be a great partner to Mexico now. "China is going to make a deal because they are going to have to make a deal", Trump said.

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The companies forecast returning $18 billion to $20 billion to shareholders within three years following merger completion. UTC chief executive Greg Hayes, when asked about the comments, said he would talk to the president later on Monday.

Mr. Trump announced Friday he would suspend his threat of a tariff, starting at 5 percent, after reaching an agreement with Mexico on border security. "It's put them at a tremendous competitive advantage and we don't have that advantage because we have a Fed that doesn't lower interest rates", Trump told CNBC, adding "our FED is very, very destructive to us". It's unclear how effective the deal will prove to be, as much will depend on how it is enforced, but Trump defended it vigorously during the CNBC interview. In the past year, Trump has imposed large import penalties on $250 billion in Chinese goods. "Because now they respect us, they didn't even respect us", Trump said.

"Obviously there is something going on in terms of monopoly", Trump said. Last week Powell opened the door to a cut if trade tensions cause US businesses to cut back on investment and hiring.

China reported on Monday its exports unexpectedly grew 1.1 percent in May from a year ago despite the higher USA tariffs, but imports fell the most in almost three years.

Refreshing other familiar themes of frustration, Trump said the Fed "certainly didn't listen to me because they made a big mistake". But the fact that Chinese leaders won't even confirm a meeting between Xi and Trump in a few weeks reflects a level of mistrust between both sides.

"If we don't make a deal, you'll see a tariff increase", Trump said.

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