US still in trade talks with China

Won’t devalue dollar amid trade war: Trump

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WASHINGTON

President Donald Trump said on Friday that the United States was still continuing trade talks with China, but was not going to make a deal for now. The world’s two greatest economies have been locked in a trade dispute with tit-for-tat import tariffs that have roiled global financial markets and raised worries about global economic growth.

Trump also said on Friday he received a very beautiful letter on Thursday from North Korean leader Kim Jong Un and added that he could have another meeting with him.  Speaking to reporters, Trump did not say when such a meeting would take place. North Korea has been testing missiles despite a June 30 meeting between Trump and Kim at which the two agreed to revive stalled working-level talks, which have yet to resume.

Trump and Kim have met three times since last year to discuss ways to resolve a crisis over North Korea’s nuclear and missile programmes, but progress has been scant on Washington’s aim of getting the North Korea leader to give up his weapons. The recent missile tests have raised questions about the future of dialogue.

Donald Trump said he will not devalue the dollar amid an escalating trade war with China that has unleashed tit-for-tat actions on trade and currency policy.

No, we don’t have to, Trump said on Friday when asked whether he plans to devalue the US dollar.

Inside the White House, hawks have been pushing for a direct intervention in currency markets by the Treasury by pointing to a slowdown in US manufacturing, which many economists have blamed on tariffs imposed by Trump and uncertainty surrounding his trade war with China.

 

The Bloomberg dollar index, which measures the US currency against a basket of peers, briefly jumped following Trump’s comment on the greenback, before slipping back to be little changed from where it was.

We have the safest currency of the world. We have the standard of the world, the president said as he left the White House for a fundraiser in the Hamptons. Trump added that if the Federal Reserve were to cut interest rates it would automatically bring down the dollar a little bit, relieving pressure on exporters.

Trump last week said new tariffs on Chinese imports will take effect Sept 1, shattering a truce reached with President Xi Jinping weeks earlier and unleashing retaliatory actions on trade and currency policy that risk accelerating a wider geopolitical fight between the two countries.

 

Trade negotiators are currently scheduled to meet again in Washington in September. But Trump, speaking on Friday, said the talks could be canceled amid the recent escalation. We’ll see whether or not we keep our meeting in September, Trump said. If we do, that’s fine. If we don’t, that’s fine.

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