This morning, Trump accused Argentina and Brazil of massive currency devaluation, saying such moves hurt U.S. farmers.

In response, U.S. Restores Steel, Aluminum Tariffs on Argentina and Brazil.

Economists disputed the notion that Brazil’s government is manipulating its currency. The Brazilian real did lose value against the dollar over the past few years, but it was due mainly to market forces, they said.

“Brazil has had a free-floating currency for a long time now, and that isn’t changing,” said economist Carlos Kawal, chief researcher at ASA Bank in São Paulo. “The real is weakening because interest rates are going down and the dollar is strengthening against emerging-market currencies.”

If anything, Brazil’s central bank is trying to beef up, not weaken, the real. As the currency’s decline gained speed last month, the bank sold more than $3 billion of Brazil’s large dollar reserves to put a floor under the real.

Trump an Economic Illiterate


Selling reserves to boost a currency is the wrong thing to do, but it makes a mockery of Trump's claim.

Tariffs will raise the price of steel hurting US car manufacturers still reeling over the GM strike and the trade war with China.

Trump is an economic illiterate and terrible negotiator as well.

How can anyone be in doubt?


One of my readers accurately commented: "The notion that Argentina has displayed enough economic competence to manipulate its currency in any direction successfully is an odd one."

Mike "Mish" Shedlock

Foolishness of Trump's Steel Tariffs in One Image

Trump hopes tariffs will bring back steel manufacturing jobs. It won't happen.

More Tariff Madness: Trump Targets Steel, Aluminum

Trump administration ponders a global tariff of at least 24% in a mad effort reduce the trade deficit and save jobs.

Trump's Steel Tariffs Start Cascade of Downstream Pain

On Jan 24, Trump issued a proclamation on further steel and aluminum tariffs because the initial tariffs backfired.

Trump Eyes More Airbus Tariffs: Hey, Why Not?

Trump is on a Tariff stampede again. He went after Brazil and Argentina today and now has his eyes on the EU.

Triple Tantrum: Stocks Sink, GOP & EU Outrage on Trump's Steel Tariffs

Trump announced sweeping new tariffs on steel and aluminum. The stock market threw a tantrum and so did GOP leaders.

Trump Tariffs Help Sink US Steel: Investigating a Trump "Big Win"

US Steel wanted Trump to put tariffs on Chinese steel imports. The company is not at all pleased with the results.

Pandora's Box: Another Look at Steel Tariffs

Even if one foolishly believes tariffs can be a good thing, Trump went well beyond any semblance of rational thinking.

Trump to Hike Tariff Rate on $200 Billion in Chinese Goods: Two Tweets Two Lies

Trump announced in Tweets he is hiking tariffs on China. He told two lies in those Tweets. There's an implied third lie.

How to Not Sell Cars: More Steel Tariffs Coming Up

It is extremely foolish to think steel tariffs will increase employment or reduce the deficit. But here we go anyway.