Trump says US not to label China as currency manipulator

by Frankie Norman April 15, 2017, 5:48
Trump says US not to label China as currency manipulator

In an interview with the Wall Street Journal, Trump said that the Treasury Department would not label China a currency manipulator in an April 15 report to Congress on the exchange rates of the Untied States' major trading partners, despite his promise during the presidential campaign to do so.

During the campaign and even as recently as two weeks ago, Mr. Trump had blasted China for manipulating its currency to gain an edge on trade with the U.S. He promised as a candidate that he would label China as a currency manipulator, opening it up to possible punitive actions on trade.

The AAM, a coalition of major US manufacturers and the United Steelworkers union, has long stated that Chinese currency manipulation is a major cause of the USA trade deficit with China. In a newspaper interview and a White House news conference, Trump hailed the rapport he developed with his Chinese counterpart, Xi Jinping, in meetings last week that seem to have eased trade tensions.

"We think it is very important", to have a community banker on the Fed board, Mnuchin said. Trump's comment that the USA dollar was getting too strong helped push the yen higher, hurting Japanese exporters' shares.

There are fresh concerns about the French presidential election and possible USA military action against Syria and North Korea.

Eswar Prasad, a professor of Global trade at Cornell University, said it was striking that a sitting president would comment so directly on the value of the dollar.

"That'd be all right, too".

"We'll see whether or not he does", Trump said.

He reiterated this position in October 2016, saying: "I will direct my secretary of the treasury to label China a currency manipulator".

"They're not currency manipulators", Trump told the Journal about China. He said it was just to help former President Obama.

Meanwhile, adding to dollar weakness was a rise in US Treasury demand leading to lower yields, as investors sought safe havens in a risk averse environment.

"I think it's wonderful that they abstained", Trump said.

Tensions continued to mount between Washington and Moscow with Russian Federation using its UN Security Council veto on Wednesday to swat down a US-backed resolution demanding Syrian cooperation in probing last week's suspected chemical attack.

"It turns out that, first of all, lots of small companies are really helped, the vendor companies", Trump told the Journal.

"It could also be taken as an implicit threat to other countries that if the dollar stays strong and if US bilateral trade imbalances with its major trading balances stay high or continue to expand, that he will take some sort of action", Prasad said.

In the interview, Trump insisted that the USA will not allow North Korea to go nuclear. -China relations as the looking for China to be an ally on North Korea.

"You can not allow a country like that (North Korea) to have nuclear power, nuclear weapons".

But asked on Wednesday whether he would look for a replacement for Yellen when her term expires next year, the president declined to say, suggesting Yellen might be allowed to stay on.

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