Trump threatens tariffs on all $500 billion of Chinese imports

US Dollar Sinks as President Trump Hits Fed on Hikes

Trump Slams Interest Rate Hikes, Ignoring Hands-Off Tradition Toward Fed

President Trump's criticism of the Federal Reserve on Thursday came as a shock to traders, driving down U.S. interest rates, the U.S. Dollar and stocks.

World stock markets fell sharply Friday after U.S. President Donald Trump said he was prepared to put new tariffs on all Chinese imports, escalating the rhetoric in a trade war that could hit global economic growth.

On Chinese tariffs, Trump said he was "ready to go to 500", referring to the roughly $505 billion (€431 billion) in Chinese goods imported to the USA past year.

Earlier this month, the United States imposed tariffs on $34 billion of Chinese imports.

United States stocks finished the session mildly lower, with Trump's comments on trade and the Fed offsetting a round of mostly solid USA earnings reports.

"The escalating trade war, if it goes badly, could be a risk for the USA economy", Bullard said, adding he understands the policy's objective.

The Fed last raised borrowing costs in June.

Trump has also pledged to narrow the US' trade deficit with China.

Analysts say they're becoming more convinced that Trump's multi-front trade fights aren't merely a short-term negotiating ploy.

Around $505 billion of Chinese goods came into the United States in 2017, leading to a trade deficit of almost $376 billion, USA government data shows.

"There's no negotiating going on that I can see", Dollar said.

But the yuan declined further Friday as the People's Bank of China (PBOC), which sets the yuan's daily trading band, weakened the rate by the widest amount in two years.

America's central bank has twice increased benchmark lending rates this year, following three raises last year.

"We are being taken advantage of, and I don't like it", Trump said.

In congressional testimony this week, though, he expressed concern about Trump's confrontational trade policies.

"Trump has been clearly bothered by this tactic and yesterday's comments reflected his frustration at losing the battle in the trade war".

"The (yuan's) slide against the USA dollar will substantially cushion the impact on Chinese exporters from the planned next round of U.S. tariffs".

'So somebody would say, 'Oh, maybe you shouldn't say that as president.' I couldn't care less what they say because my views haven't changed, ' he told CNBC.

After Beijing offered this spring to buy more natural gas and farm goods from the U.S. to narrow the trade deficit, Treasury Secretary Steven Mnuchin said the trade war was "on hold".

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