U.S. considering tariffs on countries with undervalued currencies

U.S. considering tariffs on countries with undervalued currencies

The Trump administration considers slapping
duties on goods from countries found to have undervalued currencies. Such a move would not only hamper Washington’s
ongoing trade negotiations with Beijing, it could have an impact on South Korea as well. For details let’s turn to our Kim Hyesung. The U.S. Commerce Department said Thursday
that it’s proposing a new rule to impose tariffs on goods from countries found to have undervalued
currencies. Commerce Secretary Wilbur Ross said in a statement
that the new rule would put foreign exporters on notice that the U.S. can countervail currency
subsidies that harm its industries. He added that foreign nations would no longer
be able to use currency policies to the disadvantage of American workers and businesses. President Donald Trump has long threatened
to label China a currency manipulator, saying undervaluing the yuan against the greenback
made Chinese goods artificially cheaper abroad. But the new rule could also put goods from
other countries including South Korea, Japan, India, Germany and Switzerland, at risk of
higher tariffs. Those five countries, along with China, were
all listed on the Treasury Department’s semi-annual currency report’s “monitoring
list,” which tracks currency market interventions, high global current account surpluses and
high bilateral trade surpluses. The Treasury Department was expected to release
its biannual currency report in April but it has yet to do so. The latest announcement by the U.S. Commerce
Department puts further pressure on Beijing amid escalating trade tensions between the
U.S. and China as they work on a trade deal. The Chinese yuan has weakened more than three
percent this month to near seven yuan a dollar. The Commerce Department did not yet outline
the specific criteria that it would use to evaluate whether the U.S. pricing of a product
was artificially low because of currency undervaluation. Kim Hyesung, Arirang News.

7 thoughts on “U.S. considering tariffs on countries with undervalued currencies

  1. I think Venezuela should sanction USA because he has a over value USD compare with their economy .How that will be ?

  2. Is that news? USA is so fearing China. But the superpower even cannot beat a single private company Huawei.

  3. What about the usa printing dollars! Trump is doing something good, he is showing the true nature of the united states. A country that use blackmail as foreign policy, war as a mean to destroy countries, lies as everyday policy, …..

  4. Then they have to tariff the entire world then! China is hardly the only country with an undervalued currency against the USD. India, Vietnam, Bangladesh, basically all of the world's developing countries have even more undervalued currencies than China. Just look at a table of GDP (PPP) vs GDP (nominal) for all countries and compare the ratios.

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