Transcript for Trump takes jabs at Federal Reserve Chair Jerome Powell
Before president trump left for the g7 summit, he ratcheted up his trade war with China increasing tariffs and ordering American companies to consider alternatives to doing business with the country. ABC's Rachel Scott is at the white house with the latest on the escalation and how markets are reacting. Rachel, good morning. Reporter: Eva, good morning to you. The U.S. And China going tit for tat back and forth here, each leader trying to come out on top but all of this trickles down to the consumer and the reality is consumers now will not only see higher tariffs, they're going to see more starting in just about a week. Blow by blow the U.S. And China are becoming more entrenched in an ongoing trade war. Our economy is doing great. We're having a little spat with China and we'll win it. Reporter: Before departing for France president trump still insisting the U.S. Has the upper hand despite growing concern about a looming recession in part due to the conflict. No, I think our tariffs are very good for us. We're taking in tens of billions of dollars. China is paying for it. Reporter: Wall Street though on edge. The Dow plunged more than 600 points Friday. New retaliatory tariffs by China sent the president on a tweet storm earlier in the day announcing, I hereby order U.S. Businesses to cut ties with China and move back to the U.S. A move he claims he has the power to do if he declares a national emergency. Well, in 1977, we had an act passed, a national emergency act. I have the absolute right to do that. Reporter: The president fired his next shot, announing he's raising the rate of tariffs on about $550 billion worth of Chinese goods. $250 billion of goods from China will now see a 30% tariff starting October 1st. And the remaining $300 billion in goods will be hit by a 15% tariff, some of that starting September 1st. For consumers here at home that means a higher price tag on things like electronics and clothes. Meanwhile, farmers who sell pork and other products to China are caught in the cross fire. Pig farmers are currently losing $25 to $30 per pig and the future of the next six months does not look very optimistic. Rachel, this is a critical time for the president. As you mentioned, the economy is one of his signature issues and the stakes are high. The 2020 election but yesterday we saw him push the blame of any uncertainty to the fed. Reporter: That's right, Eva. The president taking jabs at Jerome Powell, the man he hand picked for fed chair. The president now saying if Powell wanted to step down and resign, he wouldn't stop him. The strategy from the white house has been to push any blame or sign of weakness in the economy over to the fed for not lowering interest rates, but the fed dropped those rates last month for the first time in a decade and the president now saying they need to come down even lower, Eva. Rachel Scott for us at the white house, thank you.
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