Trump's currency innovation bears fruit, news by Hebei Longhseng
| One of the many innovations the Trump administration has brought to trade policy is the use of currency manipulation allegations within subsidy investigations. A ruling on imports of twist ties from China will likely be the first where tariffs are applied with action due in December. The second is a wider review of Vietnam’s trading practices under the section 301 process. Tariffs could be applied as soon as Jan. 8, presenting a geopolitical challenge to the Biden administration. The tariffs may face legal scrutiny as the currency manipulation designation is meant to come from a Treasury Department assessment. By law that assessment should be made twice a year. Only two such reviews, the most recent in January 2020, have been made since April 2018. Panjiva’s assessment of two of the three criteria used by Treasury, a goods trade surplus over $20 billion and a current account to GDP ratio of 2% or more, shows Vietnam meets the criteria but China does not. Seven other markets including Malaysia, Taiwan and Thailand, meet both criteria. The third criteria, on foreign exchange trading, is less transparent and assessed by the Treasury Department. The remedies in the Vietnam case may include tariffs on furniture imports. These have surged recently with a 41.6% year over year increase in seaborne shipments in October. That’s included a 3-fold rise in shipments linked to Williams Sonoma while Ikea and La-Z-Boy have been trimming their imports By Hebei Longsheng Metals & Minerals Co,. Ltd. |
