The U.S.-China trade war took a dangerous turn for the worse Monday as Beijing allowed its currency to weaken and said it was halting new American farm purchases, sending U.S. stocks in a tailspin and heightening risks of a global economic downturn.plans to impose new 10% tariffs next monthThen later in the afternoon, the U.S. Treasury Department formally labeled China a “currency manipulator,” reversing years of avoiding the designation so as not to antagonize Beijing.
Beijing on Monday let its yuan fall in value to its lowest level against the dollar in more than a decade. The exchange rate on Monday breached a kind of psychological threshold in hitting 7 yuan to the dollar. A weaker yuan would make Chinese exports cheaper for U.S. buyers, potentially blunting the effects of higher U.S. tariffs.
According to Bergsten, who with his colleagues at Peterson has extensively studied China’s currency practices, Beijing was guilty of manipulating its currency from 2003 to 2013, but no longer. Past administrations did not label China a manipulator to avoid publicly embarrassing Beijing, which officials viewed as being counterproductive.
Trump did not say what further actions he might take. But in tweets Monday, the president took aim at China for its trading practices, alleging Beijing “has always used currency manipulation to steal our businesses and factories, hurt our jobs, depress our workers’ wages and harm our farmers’ prices.”
What happens when you vote incompetence into the WH....We're going to be in a world of hurt
WINNING!!!
How many candidates promised to do this and then didn't once they were in office?
A global recession brought to you by Trump. This idiot should not be anywhere near economic policy.
Dammit Obama.
trumpsanidiot trumpsfault trumpsarussianpuppet
Looks as if this bromance just went full stop.
The President is in way over his head. Putting the best interests of the country first, the smart thing for Trump to do is to call Biden to the White House for advice and guidance. Nobody knows the China relations, history and sensitivities better than he does.
Place all currencies on gold (or fixed standard) currency.
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Source: WSJ - 🏆 98. / 63 Read more »