Trump threatens tariffs on all $505bn of Chinese imports

China has been cracking down on excessive debt in its financial system but policy-watchers now expect Beijing to shift toward looser monetary policy, and potentially stimulus, to shield its economy from the trade row.

MSCI's gauge of stocks across the globe gained 0.45 percent, helped by Asian markets.

A weaker yuan risks increasing trade tensions with the Trump administration, which has repeatedly accused China of keeping its currency artificially weak to support its huge export industry.

Currency wars occur when a number of countries seek to depreciate the value of their own currencies in order to stimulate their economies, Investopedia writes.

Then the bean really amps it up, saying: "Trump wants to win over more voters by starting a trade war".

The yuan fell to 6.7943 per dollar by late morning on Friday, down 0.28 per cent, according to Bloomberg data, and is at its lowest levels in a year following an accelerating slide in recent weeks as the trade conflict heated up.

China can also undo the impact of the U.S. tariffs by devaluing the yuan by 8 per cent.

"The central bank wants to use the currency movements to achieve internal and external economic balance".

The dollar index rose 0.13 percent to 95.208, after rising as high as 95.652, with the euro down 0.01 percent to $1.1637. He says ECB President Mario Draghi may elect to step into the fray at the central bank's July 26 policy meeting, given American attempts to talk the dollar down in January were extremely unpopular in Frankfurt.

On Wall Street, the Dow Jones Industrial Average fell 134.79 points, or 0.53 percent, to 25,064.5, the S&P 500 lost 11.13 points, or 0.40 percent, to 2,804.49 and the Nasdaq Composite dropped 29.15 points, or 0.37 percent, to 7,825.30. China promptly levied taxes on the same value of United States products.

"By running tight monetary policy and loose fiscal policy, Trump has put nearly flawless conditions in place for a rally in the dollar", said Karl Schamotta, a strategist at Cambridge Global Payments in Toronto.

"There's no question that the weakening of the currency creates an unfair advantage for them", Mnuchin said.

The Treasury's next semi-annual foreign-exchange policy report - the government's formal channel to impose the manipulator designation - is expected in October.

Data released by the US Census Bureau show that in 2017, the US imported 505.5 billion worth of goods from China, while its exports to China amounted to only $129.9bn.

A cheaper yuan will make Chinese exports less expensive and has the potential to boost sales overseas. "We don't usually know the extent of intervention".

"Currency is now part of the trade war, folks", said Greg McKenna, market strategist at AxiTrader.

And analysts have warned the devaluation of the yuan could be the first signs the ongoing trade war is descending into a currency war.

"The barrage of commentary will likely force the market to scale back long dollar positions".

Related News:

  • Rory McIlroy makes ballsy claim after putting himself into Open contention

    Rory McIlroy makes ballsy claim after putting himself into Open contention

    Tiger Woods was on the range, preparing to tee off on the weekend at the British Open for the first time since 2014 at Hoylake. Johnson and Kisner were at 6-under 136, one shot ahead of Tommy Fleetwood (65), Pat Perez (68) and Xander Schauffele (66).
    Thousands evacuate pro-regime Syria towns

    Thousands evacuate pro-regime Syria towns

    The province borders Turkey to the northwest but is otherwise nearly completely surrounded by government-held territory. Residents of a third town, Ishtabrak, are also being evacuated to the coastal region of Latakia.
    Bezos' spaceship reaches new heights in escape test flight

    Bezos' spaceship reaches new heights in escape test flight

    Today's launch should be pretty routine for the space startup, but nothing is ever guaranteed when you're working with rockets. Parachutes deploy to gently land the capsule , while the rocket reignites its engine to land upright on the ground.
  • Missouri: Hundreds at vigils mourn victims of Branson's duck boat accident

    Missouri: Hundreds at vigils mourn victims of Branson's duck boat accident

    As for the survivors, four patients were still in the hospital Friday evening, including two adults in critical condition. The boats were originally designed for the military, specifically to transport troops and supplies in World War Two.
    United Kingdom  extremist convicted of plotting to kill prime minister

    United Kingdom extremist convicted of plotting to kill prime minister

    Naa'imur Zakariyah Rahman, 20, from Finchley in north London, meant to attack the prime minister with a knife or a gun. Mr Justice Haddon-Cave told Rahman that when he returns to court on 31 August he should expect a lengthy sentence.
    Eighth alleged victim identified in Bruce McArthur investigation

    Eighth alleged victim identified in Bruce McArthur investigation

    On July 4, investigators returned to Mallory Crescent for nine days to do excavation work in a ravine behind the house. Later that month, he was charged with the first-degree murders of Majeed Kayhan, Soroush Mahmudi, and Dean Lisowick.
  • Hazard Urged to Stay at Chelsea by Fabregas

    Hazard Urged to Stay at Chelsea by Fabregas

    The Spanish giants have identified the Belgian as the man they want to replace Cristiano Ronaldo at the Bernabeu and work is under way to take him to the club.

    Surprise! Buffy is getting rebooted with Joss Whedon producing!

    Talks reportedly began in the fall of that year; THR notes that Breen's involvement pushed the project to the next stage. The reboot will be produced by the Fox 21 TV Studios of 20th Century Fox, but the program still needs a network.
    Pompeo Urges Nations to Keep Pressuring N. Korea

    Pompeo Urges Nations to Keep Pressuring N. Korea

    The US state secretary also expressed his hope that another meeting between Putin and Trump would take place this autumn.
  • Trump says 'not thrilled' about interest rate hikes

    So Clinton said that the Fed's independence was one of the things that actually made the US economy look strong, according to Low. The Fed has been slowly raising interest rates since December 2015 in an effort to avoid overheating the USA economy.
    Cambage rips WNBA for 'ladylike' attempts

    Cambage rips WNBA for 'ladylike' attempts

    She surpasses an old teammate, Riquna Williams who scored 51 points in a game from 2013 when she was a member of the Tulsa Shock. Cambage, a 6-foot-8 center, made 17 of 22 shots from the field - including 4 of 5 from 3-point range - and 15 of 16 free throws.

    United States officials still in the dark on what Trump discussed with Putin

    Ukraine and European powers are unlikely to support a referendum in the Donbass region, where pro-Russian separatists hold sway. Trump appeared to answer "no" to a reporter's question asking whether Russian Federation was still targeting the U.S.


Most liked

Kevin Anderson Acknowledges South African President's Call
His legacy has grown with those two epic match wins en route to the Final and as a late bloomer to the sport, he is ready to continue fighting to win a Grand Slam.

Roseanne on her racist Valerie Jarrett tweet: ‘I thought she was white’
Roseanne Barr is launching a new talk show, and in the first preview she's still angry about the fallout over her racist tweets . Last month, ABC announced it would in the fall debut a " Roseanne " spinoff tentatively titled " The Conners " - minus Barr .

Donald Trump Caught Lying About What Happened When He Met The Queen
While another said: 'Trump claims that the Queen reviewed her Honour Guard for the first time in 70 years. She did the same thing with former president Barack Obama when he visited the United Kingdom in 2001.

Cohen recorded Trump discussing payment to ex-Playmate
On Friday, McDougal attorney Carol Heller wrote on Twitter that she was "learning of this in real time just like everyone else". Following this news, further details have emerged from both CNN and from Micheal Avenatti , related to these revelations.

Very Large Telescope Produces New, Stunningly Sharp Pictures Of Planet Neptune
Laser tomography approach corrects for turbulence in the atmosphere; images from earth comparable with Hubble's view from space . The light from these "stars" is then analyzed to determine how it is being distorted by passage through the atmosphere.

6 pre-tournament contenders who crashed out of the British Open
Kisner is a newcomer to what amounts to an American fraternity house at golf's oldest championship the last three years. The last time the Open was played at Carnoustie, Irishman Padraig Harrington took home the Claret Jug in 2007.

Meghalayan: Collapse of Ancient Agricultural Civilizations Defines Holocene's Youngest Stage | Geology, Geoscience
The three ages comprise the Holocene epoch , which represents the time since the end of the last Ice Age . The team of a scientist is from an global team of researchers.

Great expectations as Brazil prodigy Vinicius Jr unveiled by Real Madrid
But rather than fuel any transfer talk, he stressed that ambition was one he wished to fulfil at worldwide level with Brazil. Real Madrid on Friday officially unveiled Vinícius José Paixão de Oliveira Júnior.

Glass Trailer: Willis, McAvoy & Jackson Collide in Unbreakable/Split Sequel
Night Shyamalan could execute - revealing to the audience that Split and Unbreakable exist in the same universe. While it wasn't his first film, Shyamalan's 1999 ghost story The Sixth Sense helped make him a household name.

Guardiola wants Man City stars rested and ready
Ireland under-19 global Tyreke Wilson has been called into the Manchester City squad for their pre-season tour of the US. He is training like a young guy, 18 years old. "But he is with us.

68% of Republicans approve Trump's handling of summit, poll finds
He mentioned London-based financier Bill Browder, a onetime investor in Russian Federation who said he exposed corruption there. Earlier Mr Trump rejected a proposal by Mr Putin that Russian Federation be allowed to question USA citizens. "OK.

XXXTentacion death: Four men charged with rapper's murder
The sheriff's office is now asking for the public's help to find Newsome and Allen, the two suspects still at large. They were also indicted on armed robbery charges at Broward County Court in relation to the shooting on 18 June .

Offset Arrested in Georgia for Allegedly Being in Possession of a Gun
The Migos rapper was driving outside Atlanta when his SUV was pulled over for tinted windows, according to TMZ . This, of course, is against the law, as the Migos member is a convicted felon who is now on probation.

Crowded leaderboard at midway point of British Open
But that could change if he finds a way to keep scoring as he found a way to stay dry in the second round of the British Open . It is irrelevant to me. "A lot of the shots I was looking up and I was really happy they were going straight".

Inquest opens into British woman poisoned by nerve agent
Skripal, 66, and his daughter Yulia, 33, were discovered slumped on a bench in the English town of Salisbury on March 4 . They set out to determine the place, time and type of death, but do not apportion blame.