U.S.-China trade war is now becoming a currency war, too
President Trump is laying into China and the European Union as currency manipulators, accusing them in a tweet last Friday of "manipulating their currencies and interest rates lower" in an effort to get an edge over the United States by making their goods and service cheaper to buy in the U.S. He added that American businesses should be allowed to recapture what was lost due to "illegal currency manipulation and BAD trade deals."
Confirming the President's concerns, U.S. Treasury Secretary Steven Mnuchin told Reuters his department is closely monitoring China's currency markets for signs of manipulation. Goldman Sachs analysts on Friday warned clients that the current "trade war is evolving into a currency war."
Trump frequently attacked China as a presidential candidate. In his campaign's "7 Point Plan to Rebuild the American Economy" he promised to instruct the Treasury Secretary to label China a currency manipulator, an action that would then set off a process of countervailing action.
No comments:
Post a Comment