Trump Restores Trade Tariffs On Brazil And Argentina

Axios reports:

President Trump tweeted Monday that he will restore steel and aluminum tariffs against Brazil and Argentina due to their currency devaluations. Trump’s tweets show that he is not afraid to open a potential new front in his ongoing global trade war even as the 2020 presidential election approaches — and also touched on his antagonism with the Federal Reserve, which he said should lower rates to prevent similar actions from other countries.

The big picture: At least with China Trump had an adversary that benefited from the weakening of its currency and a continued practice of government intervention. That is hardly the case with Argentina or Brazil. Reality check: Both the Brazilian real and Argentine peso are freely traded and have been for years. The currencies have weakened because of political upheavals and dwindling growth forecasts in the two countries, not government intervention.

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. The Federal….

— Donald J. Trump (@realDonaldTrump) December 2, 2019

…..Reserve should likewise act so that countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies. This makes it very hard for our manufactures & farmers to fairly export their goods. Lower Rates & Loosen – Fed!

— Donald J. Trump (@realDonaldTrump) December 2, 2019