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Emerging market stocks and the highly sensitive Mexican peso
slid to session lows following Trump's vow, which came in an
early morning post on Twitter that gave no other details on the
planned trade action.
Representatives for the Office U.S. Trade Representative could
not be immediately reached for comment.
"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 wrote.
Brazil's President Jair Bolsonaro, an avowed Trump fan who has
actively sought closer U.S. ties, said he could speak directly
with the American leader and that he would also discuss Trump's
declaration with Brazil's economy minister.
Trump on Monday also urged the Federal Reserve to prevent
countries from gaining an economic advantage by devaluing their
currencies.
"The Federal Reserve should likewise act so that countries, of
which there are many, no longer take advantage of our strong
dollar," Trump tweeted. "Lower Rates & Loosen - Fed!"
Trump has repeatedly urged the U.S. central bank to lower rates
to below zero, arguing that negative rates in Europe and
elsewhere give those countries a competitive advantage.
However, Fed policymakers have been reluctant to take the
unorthodox policy steps tried by other global central banks. The
U.S. central bank's policymaking committee holds its next
meeting on Dec 10-11.
(Writing by Toby Chopra, Hugh Bronstein and Susan Heavey;
additional reporting by Maximilian Heath; Editing by Jon Boyle
and Chizu Nomiyama)
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