More background on why Trump threatened Japan and China over currency deprecation

I posted earlier:

• Japan finance minister Kato says Japan is not devaluing the yen

For more background on Trump’s threats:

Trump said on Monday that he has warned the leaders of China and Japan against devaluing their currencies, arguing that such actions put American industries at a disadvantage.

• “I’ve called President Xi, I’ve called the leaders of Japan to say you can’t continue to reduce and break down your currency,” Trump said during remarks at the White House. “You can’t do it because it’s unfair to us.”

Trump’s comments reflect longstanding concerns in Washington that some countries deliberately weaken their currencies to make exports more competitive while making U.S. goods more expensive on global market

• it makes it difficult for US firms to compete when other countries “are killing their currency, meaning driving it down.”

Currency policy has been a key issue in U.S.-China trade tensions, with Washington previously accusing Beijing of manipulating the yuan to gain a trade advantage. Japan, which has a history of currency interventions, has also faced scrutiny over its exchange rate policies.

Trump’s remarks signal that currency practices remain a point of contention in U.S. trade relations, adding another layer of complexity to economic discussions with China and Japan.

This article was written by Eamonn Sheridan at www.forexlive.com.