MNI INTERVIEW: White House Warns China Not To Devalue Yuan

The White House is warning China not to drive down the relative value of the yuan to support its large export market as President Donald Trump pursues an international trade regime change.

The Chinese renminbi hit an 18-year low Thursday as the People’s Bank of China has for six consecutive sessions allowed a weakening in the official rate for the onshore currency. It is a sign it is willing to allow a modest depreciation to cushion the tariff blow for their exporters.

Harrison Fields, Special Assistant to the President and Principal Deputy Press Secretary, warned Trump is not willing to let up pressure on China. The White House confirmed Wednesday the total base tariff on China is actually 145%, an amount higher than the 125% previously reported. 

"The President has made it clear that the days of China taking advantage of our workers and economy are over, and his decisive actions WILL HOLD China accountable UNLESS they come to their senses and join President Trump in his efforts to make trade freer and fairer," Fields said by email to MNI. (See: MNI EM: PBOC Seen Gradually Weakening Yuan Fixing Amid Trade War)

Treasury Secretary Scott Bessent has repeatedly said the U.S. has a strong dollar policy. White House Council of Economic Advisers Chair Stephen Miran has noted the value of the dollar as a reason for elevated U.S. trade deficits, but noted a Mar-a-Lago currency accord is possible but not currently in the works. (See: MNI INTERVIEW: Tariff Benefits Loom Despite Some Fallout-Miran)