Trump’s Trade Turmoil Continues As US Accuses Japan, China Of Currency Devaluation
President Donald Trump has once again ignited controversy by accusing Japan and China of unfairly driving down the value of their currencies, warning both nations that they “cannot continue to reduce and break down” exchange rates. This latest comment comes on the heels of new 25% tariffs on imports from Mexico and Canada, alongside a doubling of duties on Chinese goods to 20%.
Speaking from the White House, Trump revealed that he has personally contacted President Xi Jinping in Beijing and leaders in Tokyo to address what he described as intentional currency devaluation.
“You can’t do it because it’s unfair to us,” he said, adding that this practice places American manufacturers like Caterpillar at a disadvantage by making foreign exports cheaper in global markets. Citing the ongoing impact of such currency moves, he defended the imposition of tariffs as a swift way to “even the score” for American businesses.
Following his comments, Japan’s Nikkei index tumbled nearly 2% in one trading session, propelled by a surge in the yen to 148.60 per dollar, up from around 150 just a day earlier.
Japanese officials, however, rejected any suggestion that they have been intentionally suppressing the yen, with Prime Minister Shigeru Ishiba declaring that Japan is “not pursuing a so-called ‘currency devaluation policy.'”
China, for its part, has weathered years of scrutiny over its exchange-rate practices, especially after US-China tariffs rapidly escalated between 2018 and 2020. Although the Chinese yuan lost significant value against the dollar over that period, recent government intervention has steadied the currency.
Analysts such as Chang Wei Liang at DBS now see China and Japan “as being aligned with the U.S. in terms of not wanting to see excessive renminbi and yen weakness.”
Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
