Counterattack, the United States claims that China and Japan "manipulate the exchange rate"
U.S. President Trump stated at the White House that Japan and China cannot continue to devalue their currencies, calling this move unfair to the United States, and threatened to impose tariffs to make up for the losses. This statement led to an appreciation of the yen against the dollar, while the Nikkei index fell nearly 2%. Japan's Finance Minister responded that Japan has not taken any measures to weaken its currency. Experts pointed out that Trump's tariff threats put pressure on exchange rates and called for China and the U.S. to achieve trade balance and macroeconomic stability through financial consultations
According to a report by Reuters on the 3rd, U.S. President Trump stated at the White House that he has told both Japan and China that they cannot continue to devalue their currencies, "because doing so is unfair to the United States."
Trump claimed, "When Japan, China, and other countries lower the value of their currencies, it makes it difficult for us to produce tractors, and Caterpillar (a global leading machinery company - editor's note) also finds it hard to produce." He added that the U.S. "doesn't have to repeatedly complain on the phone" about this attempt but can compensate for the losses suffered by its manufacturers through tariffs.
Following Trump's remarks, the exchange rate of the yen against the dollar in the foreign exchange market temporarily appreciated from around 150.5 yen per dollar to about 149.5 yen per dollar. Reuters reported that the Nikkei index fell nearly 2% on Tuesday, highlighting the risks posed by Washington's monetary and tariff policy uncertainties to Japan's export-dependent economy. Japanese Finance Minister Taro Aso responded on the 4th, stating that Japan has not taken any measures to weaken its currency.
During Trump's first term, the U.S. government designated China as a "currency manipulator" in August 2019, which drew criticism from the international community. Five months later, China was removed from this designation to reach a trade agreement.
Regarding Trump's renewed claims of currency manipulation and tariff threats, Lv Xiang, an expert on U.S. issues at the Chinese Academy of Social Sciences, told the Global Times reporter on the 4th that Trump claims that Japan and China intentionally lowered their exchange rates, which led to the imposition of tariffs. The fact is that Trump first threatened to implement tariff measures, which put pressure on the exchange rates of the relevant countries.
Lv Xiang stated that under China's strong measures, the RMB exchange rate will remain stable. If the U.S. is willing to cooperate, China and the U.S. can meet the needs of trade balance while maintaining macroeconomic stability through financial consultations.
Author of this article: Zhao Shuang, source: Global Times, original title: "Turning the Tables, the U.S. Claims Japan and China 'Manipulate Exchange Rates'"
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