Editors note. The pressure to do something about currency misalignment will continue to grow. Senator Graham needs to pivot from a focus on only manipulation to the dollar overvaluation problem.
Sen. Lindsey Graham (R-SC) on Monday alleged that China was devaluing its currency to avoid the pain of U.S. tariffs and said he planned to push legislation to combat the practice.
[ August 6, 2018 | Inside US Trade]
“They’re doing this to offset the harm they’re feeling from the U.S. tariffs,” he told reporters after touring a plant in Anderson County, SC.
Graham said China had devalued its currency by nearly nine percent in a month and that he planned to speak with President Trump about reintroducing legislation that would label Beijing a currency manipulator and allow tariffs on goods benefiting from artificially devalued currency.
“I’m afraid we’re going to have to go down to this road because to basically avoid the pain of tariffs they’re manipulating their currency, which hurts the entire world economy,” he said.
