Currency Clash: Trump Team Eyes China's Manipulation Moves

A trade adviser to President-elect Donald Trump stated that the new administration would not view China's currency manipulation favorably. Trump labeled China a currency manipulator in 2019. With his potential return, further tariffs and economic confrontations are expected, especially if China weakens its yuan by 2025.

A trade adviser to President-elect Donald Trump indicated that the administration would adopt a tough stance against any attempts by China to manipulate its currency. Peter Navarro, Trump's senior counselor for trade, emphasized that while the Treasury Department's reviews will proceed without White House interference, any manipulative actions by China would be met with resistance.

In 2019, Trump's administration labeled China a currency manipulator for the first time since 1994; although the determination was later revoked, it highlighted a willingness to confront China economically. Reuters reported that with Trump's potential return to the White House, Chinese leaders are considering weakening the yuan by 2025 in anticipation of heightened trade tariffs.

The move signals a need for economic stimulus as threats of punitive measures persist. Trump's trade adviser, Navarro, suggested that the U.S. might impose higher tariffs if China proceeds with its currency plans. Immediate action against currency manipulation might include increasing tariff rates without waiting for Treasury reports.

(With inputs from agencies.)