Trump says he will restore tariffs on Brazil, Argentina ‘immediately’

  • Trump says he will restore tariffs on Brazil, Argentina ‘immediately’

Trump says he will restore tariffs on Brazil, Argentina ‘immediately’

Earlier today Trump restored the tariffs on steel and aluminum from Brazil and Argentina.

In a tweet posted just after 6 a.m., Trump said the countries have been "presiding over a massive devaluation of their currencies" which he says is bad for American farmers. But it recovered to trade stronger at 4.2230 per United States dollar.

Trump, who gave no details about his new plan, said the currency weakness was hurting USA farmers, a key demographic for him ahead of the November 2020 election. 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. "Therefore, effective immediately, I will restore the Tariffs on all Steel & aluminum that is shipped into the US from those countries", Trump tweeted.

Representatives for the Office of the U.S. Trade Representative could not be immediately reached for comment.

Speaking at a business forum, Vice President Hamilton Mourão denied Brazil was manipulating its currency and also said the country should discuss investment projects with China - a relationship initially shunned by the Bolsonaro administration that has lately grown warmer.

"I'm going to call him so that he doesn't penalise us".

There will always be a debate on whether it is manipulation or is the USA the economy stronger and therefore demands a higher currency. "I hope that he understands.and I'm nearly certain he'll listen to us", he said.

In a statement, Brazil's government said it was already in discussions with Washington. Trump falsely claims China is paying the US billions and billions of dollars in tariffs. "Brazil is making gesture after gesture to support the worldwide forums, but the not doing the same", Barbosa said.

He also touted the economic boom since imposing sweeping tariffs on steel and aluminum imports past year.

The president also took a swipe at the Federal Reserve.

In Brazil, the recent slide in the real has caused a public outcry and led the central bank to intervene, while Argentina put in place currency controls to steady its beleaguered peso.

Trump accused both countries of manipulating their currencies to hurt U.S. farmers, and he paired his action with criticism of the Federal Reserve, notes Bloomberg, which sees the morning moves as significant. He announced the actions in a tweet and in doing so, criticized the Fed for not devaluing the dollar by lowering rates and loosening policy. The U.S. central bank's policymaking committee holds its next meeting on December 10 and 11.