Trump's Trade Adviser Warns China Against Currency Manipulation

Trump's incoming trade adviser, Peter Navarro, asserts that the new administration will not tolerate Chinese currency manipulation. He indicates potential tariff escalation if manipulation occurs. The Chinese embassy denies the accusations, claiming they don't engage in competitive devaluation. A 2019 Treasury designation of China as a 'currency manipulator' was symbolic.

In a pointed statement on Thursday, Peter Navarro, a top trade adviser to President-elect Donald Trump, cautioned China about manipulating its currency. He indicated that the new administration would take a tough stance against such actions, suggesting increased tariffs as a possible response.

Navarro emphasized that while the Treasury Department's regular review will assess currency practices, Trump might not wait for this report to act against Chinese devaluation. The Chinese embassy firmly dismissed these claims, asserting China does not engage in competitive currency depreciation.

The issue of currency manipulation has been contentious, with the Trump administration previously labeling China as a manipulator in 2019, only to reverse this the following year. As Trump prepares to return, economic strategies, including potential tariff hikes, are being reconsidered amid tensions with China.

(With inputs from agencies.)