China Weakens Currency, Halts U.S. Crop Imports as Trade War Ratchets Up

Aug 06, 2019

The Treasury Department designated China a currency manipulator after it allowed its currency to weaken to an 11-year low amid the ongoing trade war with President Trump. China’s move came after Trump last week threatened to impose a further 10% tariff on $300 billion of Chinese goods. Trump lashed out Monday, accusing China of using currency manipulation to “steal our business and factories, hurt our jobs, depress our workers’ wages and harm our farmers’ prices. Not anymore!” China also directed state-owned companies to suspend imports of U.S. crops. Economists have refuted Trump’s claims that China will bear the economic brunt of increased tariffs, saying U.S. consumers will in fact suffer the most. Stocks dropped in response Monday, with Wall Street suffering its worst day of 2019.

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