China not currency manipulator, US dollar too strong, says Trump in major flip-flop on campaign vow

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US President Donald Trump and Chinese President Xi Jinping at their summit in Mar-a-Lago state in Palm Beach, Florida, last week as the US leader declared that China is not a currency manipulator while warning against a strong US dollar. Photo: Reuters

Published: 4:15am, 13 Apr 2017Updated: 12:38pm, 13 Apr 2017

President Donald Trump said he will not brand China a currency manipulator, abandoning a core promise of his election platform that tapped into voter anger about trade-driven job losses.

Trump, speaking in an interview with the Wall Street Journal on Wednesday, said China hasn’t manipulated its currency for months, and added that the US dollar is getting too strong.

While Trump vowed on the campaign trail to label China a currency manipulator on his first day in office, he didn’t do it, and Treasury Secretary Steven Mnuchin has said the official assessment will come in a semi-annual foreign-currency report due this month.

“They’re not currency manipulators,“ Trump said, according to the Wall Street Journal.

A 100 yuan banknote is placed beside a U.S. 100 dollar banknote as President Donald Trump declared that China is not a currency manipulator. Photo: Reuters

Failure to officially name China a currency manipulator would be the latest indication Trump may tone down trade-related campaign threats, often directly aimed at China. The Treasury report is the government’s formal channel to impose the manipulator designation, leading to negotiations for a solution and penalties if the practise continues.