Washington, Dec 3 (IANS) US President Donald Trump has said that he will immediately restore tariffs on all imports of steel and aluminium from Brazil and Argentina.
"Brazil and Argentina have been presiding over a massive devaluation of their currencies, which is not good for our farmers," Efe news quoted the US President as saying in a tweet on Monday.
"Therefore, effective immediately, I will restore the Tariffs on all steel & aluminium that is shipped into the US from those countries," he added.
In May 2018, the Argentine government announced that it would put limits on its aluminium and steel exports to the US in order to avoid the tariffs announced by Trump.
A few days later, the Brazilian government accepted an agreement with the US on quotas, under which it accepted a 10-per cent tariff on aluminium and limits on its steel sales.
The US President demanded the Federal Reserve to lower interest rates.
"The Federal 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," he said.
Monetary manipulation, according to Trump, "makes it very hard for our manufactures & farmers to fairly export their goods."
"Lower Rates & Loosen - Fed!" the US President added.
"US Markets are up as much as 21 per cent since the announcement of Tariffs on 3/1/2018," the US President said in another tweet, "and the US is taking in massive amounts of money (and giving some to our farmers, who have been targeted by China)!"
The currencies of Chile, Colombia and Brazil hit historic lows against the dollar last week due to political instability, pending reforms, popular demands for social equality and growing uncertainty due to a trade war with no truce in sight.
In Argentina, despite last year's incessant devaluation, the dollar remained stable.
After three consecutive cutbacks, model interest rates in the US are currently between 1.5 and 1.75 per cent, while the Fed generally believes that further adjustments are unnecessary.
Last week in its report known as the "Beige Book," the Fed indicated that the US economy maintained a "modest" growth between October and mid-November, and presents a generally "positive" perspective of inflation under control as the year ends.
For its part, the US Commerce Department reported last Friday that the economy grew at an annual rate of 2.1 per cent between July and September, two-tenths more than was estimated a month ago, and a tenth more than the 2 per cent growth in the previous quarter.
Private economists are more optimistic with regard to the progress of the US economy than in past months, above all in light of the outlook that the Trump government will reach an accord with China that puts an end to the trade war with that economic giant.
Optimism about a swift agreement that will eliminate the tariffs imposed by the two trade partners has led to stock market records being broken.
In September, Brazil's Foreign Minister Ernesto Araujo said during a visit to Washington that his government and the US would soon reach a free trade agreement but gave no specific date when that would happen.
The Brazilian official said the governments of Trump and Jair Bolsonaro were negotiating "in generic terms" and that the goal was to determine quotas for the exchange of specific goods, such as meat and steel, so that later a deal can be reached that eliminates or substantially lowers tariffs.
According to the Office of the US Trade Representative (USTR), trade in goods and services between the US and Brazil added up to $103 billion in 2018.
Mumbai, Aug 6 (IANS) Headline inflation is expected to remain at elevated level in Q2FY21, but is likely to ease during the second half of the current fiscal aided by a favourable base effect, RBI Governor Shaktikanta Das said on Thursday.
The Governor said the Monetary Policy Committee (MPC) was of the view that supply chain disruptions on account of the COVID-19 pandemic persists, with implications for both food and non-food prices.
"A more favourable food inflation outlook may emerge as the bumper rabi harvest eases prices of cereals, especially if open market sales and public distribution offtake are expanded on the back of significantly higher procurement. Nonetheless, upside risks to food prices remain," Das said while delivering the decision of the MPC on monetary policy.
"The abatement of price pressure in key vegetables is delayed and remains contingent upon normalisation of supplies. Protein-based food items could also emerge as a pressure point."
Consequent to the high retail inflation, the MPC decided to retain the RBI's key short-term lending rates, but maintained its growth oriented accomodative stance.
Accordingly, the repo rate, or short-term lending rate for commercial banks, was retained at 4 per cent.
Like wise, the reverse repo rate stands unchanged at 3.35 per cent.
The MPC voted to maintain accommodative stance, thus opening up possibilities for more future rate cuts.
It was expected that the MPC might hold rates as recent data showed that retail inflation has been at an elevated level during June.
The retail or consumer price index (CPI) stood at 6.09 per cent in June.
The urban CPI stood at 5.91 per cent and rural at 6.20 per cent.
As per the data, retail inflation level has reached the upper limit of the medium-term CPI inflation target of 4 per cent.
The target is set within a band of +/- 2 per cent.
Besides, Das in his address pointed out that higher domestic taxes on petroleum products have resulted in elevated domestic pump prices and will impart broad-based cost push pressures going forward.
"Taking into consideration all these factors, the MPC expects headline inflation to remain elevated in Q2:2020-21, but likely to ease in H2:2020-21, aided by favourable base effects," Das said.
"Given the uncertainty surrounding the inflation outlook and extremely weak state of the economy in the midst of an unprecedented shock from the ongoing pandemic, the MPC decided to keep the policy rate on hold, while remaining watchful for a durable reduction in inflation to use available space to support the revival of the economy."