President Donald Trump has announced plans to place tariffs on steel and aluminum coming from Argentina and Brazil. Trump says the countries have had a negative impact on U.S. farmers due to currency devaluation.
In a Morning morning tweet, Trump said that the tariffs would go into effect “immediately.”
“Brazil and Argentina have been presiding over a massive devaluation of their currencies, which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries,” Trump said in a tweet.
Both Argentina and Brazil have become significant agricultural trade partners with China in the wake of the U.S.-China trade war. Argentina has reportedly shipped $2.5 billion worth of soybeans to China in 2019, while Brazil has shipped approximately $25.5 billion in agricultural products, including soybeans.
Trump also called on the U.S. Federal Reserve Bank to loosen monetary rates. In a subsequent tweet, Trump said that countries have taken advantage of “our strong dollar” by devaluing their own currency. He did not list examples, citing “many” counties.
“This makes it very hard for our manufactures & farmers to fairly export their goods. Lower Rates & Loosen – Fed!,” he tweeted.
The Federal Reserve will hold its next policymaking meeting on Dec. 10-11.