Donald Trump: China and European Union ‘Manipulating Their Currencies’
Trump discovers a paradox of protectionism: his tariffs have driven down the exchange rates of the countries he has targeted. Exactly as economists predicted back in spring 2017
It looks like Trump's economic team are aware of this and are willing to expanding trade tariffs if they don't comply. Example the US started to impose tariffs on 30 billion dollars of China's good and was expanded to 200 billion because as Trump explained were not willing to change their behavior. It remains to be seen who will throw in the towel first. My bets are on the US to win this trade war because China has a lot more to lose.
The EU will also comply. They are having their own problems with UK leaving next year and have several European countries barely surviving economically. I remember reading an article when the European union was forming that the purpose of their union was to form one big economic power big enough to rival the US. The author was sounding the alarm bells for the US to be wary of this union.
