Trump's Trade Advisor Navarro Warns Against China's Currency Manipulation

Forex - Peter Navarro, President Trump's senior advisor for trade and manufacturing, stated that the new administration will not view any attempts by China to manipulate its currency "favorably." Navarro mentioned that he would not interfere with the White House's two-year investigation by the Treasury Department into whether foreign trade partners are manipulating their currencies. However, he expressed doubt, saying, "I don't believe the Trump Treasury will greet China's currency manipulation with much enthusiasm. China's history as a currency manipulator is well-known."

The Trump administration labeled China a currency manipulator in 2019, marking the first such designation by the U.S. government since 1994. This decision was revoked the following year. Although this move was more symbolic than substantial, it indicates the Trump administration's readiness to engage in an unprecedented trade war with the world's second-largest economy, a threat he frequently made during his campaign. The 2019 designation followed a period in which the Chinese government allowed its currency to depreciate against the dollar.