Published: Wed, November 28, 2018
Money | By Arnold Ball

Trump tariff talk pushes dollar to near two-week highs

Trump tariff talk pushes dollar to near two-week highs

Donald Trump has issued a new tariff threat to China, escalating the trade war between the two countries four days before of a key meeting with the Chinese President, Xi Jinping.

"Donald Trump's renewed tariff threats against China have magnetized investors to the US dollar", Lukman Otunuga, a research analyst at broker FXTM, said in a note.

"Maybe. Maybe. Depends on what the rate is", Trump said in an interview with The Wall Street Journal published Monday.

Mr Trump said it was "highly unlikely" that he would agree to Beijing's request to hold off on the tariff rise, the newspaper said.

US President Donald Trump has told the Wall Street Journal that the US may proceed with new tariffs on consumer tech made in China, including the iPhone.

Trump is due to meet Putin on the sidelines of the G20 summit in Buenos Aires, which convenes on Friday and Saturday.

"What I'd advise is for them to build factories in the United States and to make the product here", Trump said "And they have a lot of other alternatives".

Mexico's new government agrees to Trump's 'asylum waiting room' plan
One variation, called "Safe Third", would have denied asylum claims on the grounds that asylum seekers had found haven in Mexico. He added that the United States "will allow those who come into our Country legally" and emphasized: "All will stay in Mexico".

In recent months the United States and China have been engaged in rather heated negotiations regarding global trade deals, and the U.S. has leveraged tariffs in an attempt to gain the upper hand.

White House economic guru Larry Kudlow told reporters Tuesday that new tariffs are definitely coming 'if we can't get something done.

The best hope for an unexpectedly positive outcome is that the Chinese could come up with something that appeals to the Trump ego by appearing to give him a victory without China actually making meaningful concessions.

The tariffs were first imposed in September.

American officials are reportedly focusing on the cybersecurity risks of the Chinese telecom. He declined to say what other US officials will join Trump in the session. "If we don't make a deal, then I'm going to put the$267 billion additional (tariffs) on".

China has retaliated but has less room to manoeuvre as the USA buys much more from China than it exports there. Secretary of State Mike Pompeo, U.S. Trade Representative Robert Lighthizer, national security adviser John Bolton and Kudlow will also be at the G20.

Trump's advice to all businesses that manufacture is to "build factories in the United States and to make the product here".

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