The beginning of the global financial crisis is here as the two biggest economies in the world are on a collision course. Even after so many attempts the trade war between China and the United States doesn’t seem to be cooling down. With the addition of an extra 10% tariffs on $300 billion worth of Chinese imports, the trade war is intensifying among both the countries. The President of the country is adding fuel to the fire by his tweets.
On 6th August, Donald Trump took to Twitter to express his views on the ongoing trade war. He tweeted, “Massive amounts of money from China and other parts of the world are pouring into the United States for reasons of safety, investment, and interest rates! We are in a very strong position. Companies are also coming to the U.S. in big numbers. A beautiful thing to watch!”
His tweet did spark rage in China and later Beijing has asked its rate-run companies to not buy any agricultural products from the United States. The currency of China has also weakened for the time in the last 11 years in comparison with the US dollar, according to the experts it could be strategy 0f the country to boost its export.
Following this, the Treasury Department on Monday has labeled the country as “currency manipulator”. Since the era of Bill Clinton, this was the first time that an administration has made such a remark on other countries. The whole set of events has renewed round of trade angst.