U.S. President Donald Trump continues to make
his presence felt around the world in his second week in the Oval Office. Now, he’s accused not only China… but Japan…
of manipulating their currencies. Kim Hyesung has the details. Two weeks into his Presidency and Donald Trump
is hitting his campaign issues one by one — this time it could be a currency war. President Trump on Tuesday accused Japan and
China of devaluing their currencies to gain a trade advantage against the U.S. “You look at what China’s doing, you look
at what Japan has done over the years. They play the money market, they play the
devaluation market and we sit there like a bunch of dummies.” And just hours earlier, his trade advisor
accused Germany of using a grossly undervalued euro to “exploit” the U.S. and Germany’s EU
partners. Japan’s chief cabinet secretary, Yoshihide
Suga, however, flatly denied Trump’s assertion, saying the Bank of Japan’s policy is in line
with G7 and G20 agreements. During the election campaign, Trump repeatedly
criticized China as a currency manipulator, saying that he would even impose a 45-percent
tarriff on Chinese imports. But according to U.S. Treasury standards,
in order to use trade retaliatory measures and label a country a currency manipulator
, a country needs to have a trade surplus with the U.S. of over 20 billion dollars,
a current account surplus worth more than 3 percent of its GDP, and repeatedly depreciate
its currency. –
“Currently, six countries including Japan, Germany and Korea meet two of those three
criteria. China, one of them. But those are standards set only by the U.S.
— they are not global standards. If President Trump somehow labels trading
partners like China and Korea as currency manipulators… and imposes tariffs or other
retaliatory measures, it would cause so much inflation in the U.S. that it would hurt its
economy.” While it remains unclear what Trump’s next
step could be, his comments sent the U.S. dollar into a tailspin against the euro and
the Japanese yen on Tuesday, and caused yet more consternation among world leaders. Kim Hyesung, Arirang News.