Trump threatens tariffs on all $500B of Chinese imports

Trump said that raising American interest rates makes investment in China comparatively attractive, because China manipulates its currency by artificially devaluing it.

"The United States should not be penalized because we are doing so well".

The US-China spat is the largest and broadest of several trade fights picked by Trump.

Trump said on Twitter. He also once again commented on how the United States is being taken advantage of by China. He accused Beijing of stealing intellectual property, manipulating the yuan, and exposing illegal export subsidy practices.

China has retaliated with duties of its own, hitting USA imports of soybeans and pork. The president said China had harmed the deflating its currency to suppress the price of Chinese goods and violating trade laws.

United States stock index futures, already down on trade worries, fell further after the interview.

Presidents historically do not comment on the Fed's policy as it could be viewed as influencing the bank's decisions, which are meant to be independent of political influence.

President Donald Trump made it clear that, if necessary, he is ready to slap tariffs on all imports from China.

"Look, I'm not doing this for politics", Trump said during the interview broadcast on CNBC's "Squawk Box" that was recorded Thursday.

Donald Trump has threatened to hit all imports from China with high tariffs. On Thursday, automakers and vehicle-making nations such as Mexico criticized the administration's study into whether auto imports pose a risk to national security, which could lead to tariffs.

Trump nominated current Fed Chair Powell, who had served as a governor on the board of the USA central bank, to serve at its helm after Janet Yellen's retirement in February.

Trump said he was concerned about the potential impact on the USA economy and American corporate competitiveness from rising rates and a stronger dollar.

The president also praised Fed Chairman Jerome Powell as "a very good man".

Benchmark 10-year US notes last fell 12/32 in price to yield 2.8894 percent, from 2.847 percent late on Thursday.

"So somebody would say, 'Oh, maybe you shouldn't say that as president.' I couldn't care less what they say, because my views haven't changed", Trump said.

Many companies in the USA are opposed to the administration's use of tariffs against China, saying they risk hurting business and the economy without being likely to change behaviour.

The Fed has hiked interest rates twice this year and could jack the rate up twice more before year's end. When it came to interest rates, Nixon told his advisers "we'll take inflation if necessary, but we can't take unemployment".

Testifying before Congress on Tuesday, Powell cited "robust job gains" and an overall "solid pace of growth" as reasons for recent and future rate hikes.