Trump’s Trade Adviser Accuses Germany Of Currency Devaluation


Trump’s Trade Adviser Accuses Germany Of Currency Devaluation

According to Donald Trump’s top trade adviser Peter Navarro, Germany is using a grossly undervalue euro to exploit her trading partners. These comments are likely to trigger an alarm in this European Country.

Mr Navarro, who was appointed by Trump to head the new National Trade Council, expressed his concern when he was addressing the Financial Times editors. He likened the euro to an “implicit Deutsche Mark” whose under evaluation made Germany have an undue advantage over its trading partners. His comments suggest that the Trump’s presidency will focus on currency when dealing with trade partners.

Addressing various stakeholders in the United States, Mr Navarro also called the European country one of the main hurdles to a United States trade deal with the European Union. He also claimed that the ongoing talks about the Transatlantic Trade and Investment Partnership are dead.

The German chancellor, Angela Merkel, responded to Mr Navarro’s accusations saying that his country does and could not exploit the euro in any way. She added that her country has always been an ardent supporter of an independent European Central Bank. He said all these when she addressed reporters at a press conference in Stockholm.

Meanwhile, Trump has also supported those allegations saying that US’s trading partners are actively manipulating their currencies. He harshly criticised China and Japan accusing them of devaluing their currencies.

"You look at what Japan’s doing; you look at what China has done for several years. They play the devaluation market, they play the money market and they expect has to keep quest a bunch of dummies," Trump said this when he met with pharmaceutical chiefs in Washington.

Shinzō Abe the Prime Minister of Japan has defended the country’s massive stimulus program initiated by the Bank of Japan saying that the program was meant to reflate the country’s economy but not to manipulate the yen.

"Bold monetary easing is an important policy we put in place to boost our economic growth and we are not the only one doing this. Even the U.S. is doing the same thing," he told Japanese lawmakers on Wednesday.

The recently inaugurated president says his presidency will prefer bilateral trade deals including talks rather than the broad multilateral accords championed by his predecessor, Barack Obama. His intentions became clear last week when he abandoned a twelve-nation Pacific Rim deal negotiated by his predecessor.

“A big hurdle to viewing Transatlantic Trade and Investment Partnership as a bilateral deal is Germany, that continues to exploit the US and its trading partners in the European Union with an implicit Deutsche Mark’ that is constantly exploited. The country’s structural imbalance as far as bilateral trade is concerned with the US and EU underscores the economic diversity within the European Union — ergo, this is a broad multilateral accord in bilateral dress,” Mr Navarro said.

Much of the euro zone and Germany’s biggest trade surplus with the United States have been a point of constant frictions between Washington and Brussels for several decades, with both administrative centres calling for Berlin to boost domestic demand in order to rebalance its economy.

Mr Navarro, however, has revealed that he is less concerned about the possibility of a stronger US dollar and its impact on United States exports.

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