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U.S. Is Considering Duties For Nations Underrating Their Currencies

Recently, the U.S. DOC (Department of Commerce) said that it was planning for a new rule to enforce anti-subsidy duties on goods from countries that underestimate their currencies against the dollar, which is another step that can impose higher tariffs on Chinese goods. The new regulation could also put products from other nations at jeopardy of higher tariffs, counting South Korea, Japan, Germany, India, and Switzerland. Those nations—along with China—were all registered on the Department of Treasury’s semi-annual currency statement’s “monitoring list,” which monitors currency market involvements, high international current account surpluses, and high two-sided trade surpluses.

The department reported its planned rule will amend the normal counterbalancing duty method to comprise new criteria for currency misinterpretation. Trump government officials for long have viewed China’s yuan as underestimated against the dollar, in spite of the U.S.-China trade dispute, which overseas currency expertise say has impacted the yuan’s value. In a statement, Wilbur Ross—Commerce Secretary—stated, “This change places overseas exporters on notice that the DOC can countervail currency funding that harm the U.S. industries. Foreign countries will no longer be capable of utilizing currency policies to the drawback of American businesses and workers.”

On a similar note, recently, Beijing expertise stated that the U.S. needs China, as trade talks stall. China’s regional media is uniting the country’s population with messages of being firm against American “harassing,” while Chinese administration-aligned experts are pressuring to a foreign audience that the U.S. will require to negotiate. The two largest economies globally have been trapped in a trade spat for over a year. Both sides seemed to be making progress until this month when President Trump blamed China of reneging on an agreement and elevated tariffs on an extra $200 Billion in Chinese goods to 25%. Beijing came back with increasing levies on $60 Billion worth of the U.S. products.