Former U.S. President Donald Trump has accused Japan and China of devaluing their currencies, claiming it is unfair to the United States. Trump suggested that tariffs could be a solution to combat what he described as weak-currency policies by these nations. “Japan claims it is not adopting policies to directly weaken the yen, while China has been guiding the yuan to a firmer stance,” Trump noted.
The United States recently imposed steep tariffs on Canada, Mexico, and China’s top trading partners. This has led to a drop in stocks and bond yields worldwide as investors brace for the potential consequences of these new trade conflicts. Trump alleged that Japan and China are guiding their currencies lower and hinted that he could impose fresh tariffs on Tokyo if this practice is not halted.
“The way you solve it very easily is with tariffs,” Trump stated during a news conference at the White House, suggesting new tariffs on imports from Japan. Trump elaborated that while tariffs are not the only solution, they are an efficient and fast way to address the issue.
Trump’s tariff threats on devaluation
“It doesn’t have to be tariffs. But tariffs are easy, they’re fast, they’re efficient, and they bring fairness,” he added. Japan has denied Trump’s accusation that it was manipulating the yen to benefit local manufacturers.
Speaking to reporters in the White House, Trump singled out Japan and China for criticism. “Whether it is Japan or China, the weak currency against the dollar puts us at a great disadvantage,” Trump said. Tokyo’s currency came in for criticism on the same day that Trump confirmed tariffs of 25 percent would go into effect on Tuesday against imports from Canada and Mexico, with China also facing additional tariffs of 10 percent.
Speaking in Tokyo, Finance Minister Katsunobu Kato said: “Japan is not pursuing a policy of currency depreciation. As I have said before, Japan is not taking measures to devalue the currency and, if you look at recent foreign exchange interventions, you will understand that.”