Leibowitz: Currency Manipulation—A New Tool for Protection of Domestic Industries?

Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington:

Exchange rates make international transactions possible. If a trading partner (let’s call them Country X) could keep its exchange rate abnormally low against the U.S. dollar, its exports to the U.S. would be more competitive and sales would increase. At the same time, imports from the U.S. to Country X would be more expensive, potentially increasing domestic sales of Country X’s factories. Let’s suppose the Country X=Vietnam.