Trump knocks European stimulus announcement as unfair

President Trump on Tuesday morning blasted the European Central Bank’s (ECB) proposed stimulus plans, calling them “unfair to U.S.” while accusing the European bank and China of weakening their currencies for economic gain.

“[ECB President] Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA. They have been getting away with this for years, along with China and others,” Trump wrote in the first of two tweets.

Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA. They have been getting away with this for years, along with China and others.

— Donald J. Trump (@realDonaldTrump) June 18, 2019

“European Markets rose on comments (unfair to U.S.) made today by Mario D!” Trump added in a subsequent tweet.

European Markets rose on comments (unfair to U.S.) made today by Mario D!

— Donald J. Trump (@realDonaldTrump) June 18, 2019

Draghi, speaking Tuesday at the ECB Forum in Sintra, Portugal, pledged further stimulus for the European bloc in coming months if the economic situation continues to worsen, according to CNBC.

“In the absence of improvement, such that the sustained return of inflation to our aim is threatened, additional stimulus will be required,” Draghi said.

The ECB revised interest rate expectations earlier in June and said its first rate hike following the financial crisis will likely come in mid-2020 at the very earliest, according to the network.

“If the crisis has shown anything, it is that we will use all the flexibility within our mandate to fulfill our mandate — and we will do so again to answer any challenges to price stability in the future,” Draghi said, according to CNBC.

He added that the ECB projects “lingering softness” initially, in large part due to trade conflicts and other geopolitical factors, which will affect manufacturing and exports, two major factors in economic growth, according to CNBC.

Trump’s comments come ahead of the Group of 20 summit at the end of this month, and the president has warned that a new round of tariffs on Chinese goods will immediately take place if Chinese President Xi Jinping does not appear.