The Business Times
business-time-50
SUBSCRIBERS

‘America first’ showcases Trump’s currency confusion 

Policy woes are made in the US, not abroad

Summarise
google-preferred-sourceAdd BT as a preferred source
    • A "Make America Great Again" hat in front of the White House. Any Trump 2.0 push on currency policy is likely to stir up a hornet’s nest, but will not change the underlying US macroeconomic dynamics driving imbalances.
    • A "Make America Great Again" hat in front of the White House. Any Trump 2.0 push on currency policy is likely to stir up a hornet’s nest, but will not change the underlying US macroeconomic dynamics driving imbalances. PHOTO: REUTERS

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    Mark Sobel

    Published Tue, Feb 4, 2025 · 06:00 PM

    US PRESIDENT Donald Trump has again demonstrated his confusion on currency issues with his “America first” executive order on trade policy.

    Section 2a of the order shows this clearly: “The secretary of commerce, in consultation with the secretary of the Treasury and the United States Trade Representative (USTR), shall investigate the causes of our country’s large and persistent annual trade deficits in goods, as well as the economic and national security implications and risks resulting from such deficits, and recommend appropriate measures, such as a global supplemental tariff or other policies, to remedy such deficits.”

    The US current account deficit is predominantly a macroeconomic phenomenon, reflecting the country’s savings and investment gap. America’s huge and unwise fiscal deficits, which Trump’s plans threaten to exacerbate, will add to that gap.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Donald TrumpUS tariffsUS trade policy

    Share with us your feedback on BT's products and services

    Feedback

    TRENDING NOW

    Malaysia Madani, or Civil Malaysia, is Prime Minister Anwar Ibrahim's slogan encapsulating positive values (such as humanity and strong governance) that would shape policy direction. But the "corporate mafia" claims have now cast the spotlight on governance credibility.

    From 1MDB to ‘corporate mafia’: Is Malaysia facing a new governance test?

    While residential property has delivered solid gains, observers say other assets such as equities often outpace it over the longer term.

    Higher costs, lower returns: Why are Singaporeans still betting on real estate?

    Malaysia ranks 23rd globally on the Milken Institute’s global opportunity index.

    South-east Asian markets account for 8.8% of global capital inflows from 2021 to 2024: report

    Eu Yan Sang group chairman Richard Eu has been with the company since 1989 and has seen plenty of change over the years, such as how employees view their jobs.

    Richard Eu on how core values, customers keep Singapore’s TCM chain Eu Yan Sang relevant

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More