Clinton vows to impose tariffs on China to fight currency manipulation

Investing.com - Investing.com -- Speaking at a rally in Detroit on Friday ahead of next week's Democratic primary in Michigan, Hillary Clinton pledged to assist union workers by imposing tariffs on China and other top Asian nations in an effort to deter the exporters from engaging in currency manipulation.

"I will expand the ways we respond to currency manipulation, to include effective new remedies like duties and tariffs,' Clinton told a crowd filled with labor union workers at a Detroit auto parts factory.

Clinton took on exporters from China and Japan earlier this week ahead of the Super Tuesday primaries, when she penned an editorial in the Minneapolis Star-Tribune in an attempt to outline her trade policies to voters in the labor-friendly state. The companies, Clinton wrote, have "kept their goods artificially cheap for years by holding down the value of their currencies."

Earlier last month, Clinton reaffirmed her disapproval of the Trans-Pacific Partnership (TPP) signed by U.S. president Barack Obama's administration and 10 Pacific nations, while calling currency manipulation "destructive for American workers." In November, fellows from the Peterson Institute for International Economics said a provision of the comprehensive agreement could help the Treasury Department crack down on the practice.

In response, Bank of Japan governor Haruhiko Kuroda brushed off the criticism, insisting that the BOJ does not target its exchange rates as part of its monetary policy. On January 28, the Bank of Japan rattled global markets with a shocking decision to adopt a negative interest rate policy for the first time in the history of the central bank.

While Japan, Singapore and Vietnam are partners in the deal, China did not partake in the negotiations.

Clinton's comments came one night after Republican frontrunner Donald Trump excoriated the U.S. top trade partners for engaging in widespread currency manipulation. At Thursday night's GOP debate in Detroit, Trump indicated that the trade practices have forced him to manufacture select items from his Donald J Trump Collections clothing line overseas.

"They devalue their currencies, in particular China," Trump said. "Mexico is doing a big number now, also. Japan is unbelievable what they're doing. They devalue their currencies, and they make it impossible for clothing-makers in this country to do clothing in this country."

USD/JPY gained 0.07% to 113.77 on Friday, while USD/CNY rose 0.23% to 6.524.