Market News
Trump says Japan, China cannot keep reducing value of their currencies - REUTERS
By Leika Kihara and Makiko Yamazaki
Summary
- Weak Japan, Chinese currencies 'unfair' to U.S., Trump says
- Solution to weak-currency policies is tariffs, Trump says
- Japan says it is not adopting policies to directly weaken yen
- China keeps guiding yuan firmer
March 4 (Reuters) - U.S. President Donald Trump said he told the leaders of Japan and China they could not continue to reduce the value of their currencies, as doing so would be unfair to the United States.
The remarks added to market jitters as Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%, in a fresh escalation of global trade tensions.
Highlighting the risk that Japan's export-reliant economy faces from uncertainty over Washington's currency and tariff policies, the Nikkei benchmark (.N225) tumbled nearly 2% on Tuesday as Trump's comments drove up the yen. The yen briefly climbed to 148.60 per dollar on Tuesday, up from around 150 on Monday.
