MOSCOW (Sputnik) — Earlier this month, IMF Managing Director Christine Lagarde made a broad warning against resorting to protectionism just at a time when global GDP was picking up after a year of subdued growth. She said the "sword of protectionism" was hanging over global trade but did not specifically mention Trump's "America First" policy of looking out for the country's best interest.
"We are the least protectionist of the major areas. We are far less protectionist than Europe. We are far less protectionist than Japan. We are far less protectionist than China," Ross told the Financial Times, stressing that Lagarde's words were aimed at Trump administration policies in particular.
Trump's top trade policy official, who has been tasked with reducing the country's huge trade deficit, went on to stress that the United States has raked up trade deficits with Europe, Japan and China, which are all among the top five US trading partners.
"We also have trade deficits with all three of those places. So they talk free trade. But in fact what they practice is protectionism. And every time we do anything to defend ourselves, even against the puny obligations that they have, they call that protectionism. It’s rubbish," Ross said.
During his election campaign, Trump promised to label China a currency manipulator, accusing the country of undervaluing its currency in a drive to make its exports more competitive. The move would enable him to impose a 45-percent tariff on imports from China in accordance with election promises of cutting trade deficit and bringing jobs back to the United States.
