US President Donald Trump has said his country is “doing very well” in its negotiations with China and urged Beijing to reach a deal before the 2020 presidential elections.
He said that if a trade deal was still under discussion and he won the election, he would be “much tougher” with Beijing
In a series sent over the time the US stock markets opened, Trump also said the European Union treats the US “very unfairly on trade”.
Trump’s tweets did little to reassure investors who have sold stocks today after an escalation of the long-running US-China trade war at the weekend.
In the US shortly after the bell the Dow Jones industrial average index was 1.5 per cent lower, the Nasdaq was down 1.1 per cent and the S&P 500 was one per cent lower.
In Europe, France’s CAC 40 was 0.6 per cent lower, the pan-European Euronext was 0.6 per cent down and the German Dax was lower by 0.3 per cent.
Markets were also dragged down by the Brexit crisis in Britain. A tumbling pound, brought about by the heightened political uncertainty likely to end in a no-deal Brexit or a general election, could not lift the FTSE 100. It was 0.5 per cent lower this afternoon.
Trump tweeted: “We are doing very well in our negotiations with China. While I am sure they would love to be dealing with a new administration so they could continue their practice of “ripoff USA”($600 B/year),16 months PLUS is a long time to be hemorrhaging jobs and companies on a long-shot....”
“....And then, think what happens to China when I win. Deal would get MUCH TOUGHER! In the meantime, China’s Supply Chain will crumble and businesses, jobs and money will be gone!”
He then added: “For all of the “geniuses” out there, many who have been in other administrations and “taken to the cleaners” by China, that want me to get together with the EU and others to go after China Trade practices remember, the EU & all treat us VERY unfairly on Trade also. Will change!”
“Germany, and so many other countries, have negative interest rates, “they get paid for loaning money,” and our Federal Reserve fails to act! Remember, these are also our weak currency competitors!”
Trump has kept up unprecedented political pressure on the Fed to cut interest rates. At its meeting this month, analysts expect chair Jay Powell will lower rates by 25 basis points (0.25 percentage points) to insure against the intensifying trade war with China.