Global Economy Braces for 1930s-Style Unilateralism
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China’s decision this week to let its currency weaken against the dollar past a level it had defended for weeks highlights the potential for 2025 to see major tensions over exchange-rate policy.
Donald Trump and his deputies have long accused American trading partners of gaining unfair advantage for their exporters by pursuing exchange-rate devaluation. He singled out China and Japan in a Bloomberg Businessweek interview last June for maintaining cheap currencies, saying they put a “tremendous burden” on US companies.