Washington: After raising 10% additional tax on imports from China last week, Trump Government labels China as a Global Currency Manipulator. This is further escalating the trade war between the two economic superpowers.
Beijing after the country’s central bank allowed the ‘Yuan’ to fall in retaliation for new US tariffs. The potential punishments are a shadow of the steps Trump has already taken against China; it underscores the rapidly deteriorating relationship between the world’s two largest economies while US determination is largely symbolic.
The move roiled markets, with S&P 500 Index futures sliding more than 1 per cent Tuesday in Asia. The Yuan stabilized as China announced its daily fix for the onshore level. China central bank chief said that it believes that Yuan will continue to remain a strong currency in spite of US interference.
Treasurer Secretary Steven of US said that it will talk to the IMF (International Monetary Fund) to eliminate unfair competition and advantage created by China’s latest actions. It is the first time since 1990’s that US has accused China of such accusations as of Currency Manipulator.
US government to seek negotiations with the government accused of manipulation. But officials in Beijing and Washington have already been engaged in trade talks for more than a year.
These actions from US have led to a cold trade war between China and United States and can further grow if further action is not taken early.President Donald Trump had promised to take on his first day in office only requires Treasury to initiate consultations with China. Beijing has long denied U.S. accusations that it keeps its currency undervalued to make its products more competitive on world markets.
