China just threw its next punch in the trade war
By Jonathan Garber Published August 05, 2019China isn't backing down in its trade war with the United States.
Beijing responded to President Trump's threat to place new tariffs on Chinese goodsOpens a New Window. on Monday by letting its currency, the Chinese yuan, sink to the weakest level in over a decade and ordering state-owned companies to reportedly halt their purchases of U.S. agricultural products.
The onshore Chinese yuan weakened to worse than seven per U.S. dollar, hitting its lowest level since 2008, as Beijing looks to cushion the blow from Trump's tariffs. A weaker yuan makes Chinese goods cheaper for overseas buyers, which may be necessary as China just lost its spot as the US's biggest trading partner.
Trade data released Friday by the Department of Commerce showed U.S. imports from China fell by 12% in the first six months of the year, allowing Mexico to supplant it as the U.S.'s biggest trade partner.
"China dropped the price of their currency to an almost a historic low," Trump tweetedOpens a New Window. on Monday. "It’s called “currency manipulation.†Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!"
Last week, Trump said beginning Sept. 1 the U.S. would place a 10% tariff on the remaining $300 billion of Chinese goods. He went ahead with the announcement despite objections from his advisers.
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https://www.foxbusiness.com/economy/china-trade-war-renminbi-weaker-agricultural-purchases-stop
