China is effectively leading the economic and trade battle with the United States by manipulating its credible exchange rate and devaluing it. However, Donald Trump has failed to counter Beijing’s depreciation despite his efforts and his country’s Treasury Department. In such circumstances, the rise of the dollar strengthens US failure in the economic battle with Beijing.
The reality is that since early 2017, Trump has sought to use exchange rate manipulation and lowering the value of the dollar as a deadly weapon in protectionist economic confrontation with China. At the time, Trump stated that the $ 346 billion US trade deficit was due to trade with China. We are now in year 2019 and this trade deficit has reached $ 419 billion! This shows well that Trump’s economic policies toward Beijing have failed. This was essentially one of Trump’s backing in the economic battle with Beijing. But after nearly three years, just at the height of the Beijing-Washington economic battle, Donald Trump has lost the power to manipulate the exchange rate to apply protective economic methods.
The President of the United States knows very well that his inability to intelligently control the dollar will destroy all his efforts to fight the Red Dragon! As a result, the US economy will be vulnerable in the long run. Moreover, it seems that Trump wasn’t able to achieve his economic goals in the international system up to now. The existing evidence shows this very well. Accordingly, one of the most important issues is the economic relationship between China and the United States of America.
The currency(USD) has reached its highest level in recent trading despite repeated requests by the US President to depreciate the dollar. This has led to Trump’s failure in the economic war with China. Did the US President imagine an economic defeat against Beijing?
- source : Tehran times