WASHINGTON/BEIJING/SHANGHAI (Reuters) - U.S. President Donald Trump on Tuesday dismissed concerns over a protracted trade war with China, as Beijing warned that Washington’s decision to label it a currency manipulator would lead to chaos in financial markets.
Trump, who announced last week he would slap a 10% tariff on a further $300 billion in Chinese imports starting Sept. 1, said investment was pouring into the U.S. economy. He also pledged to stand with American farmers in the face of Chinese retaliation.
China has halted U.S. agricultural purchases and raised the specter of additional tariffs on U.S. farm products.
“Massive amounts of money from China and other parts of the world is pouring into the United States for reasons of safety, investment, and interest rates!” Trump tweeted. “We are in a very strong position.”
Ratcheting up the pressure on China, the U.S. Treasury Department said on Monday it had determined for the first time since 1994 that Beijing was manipulating its currency.
The move followed China’s decision to let the yuan fall below the key seven-per-dollar level for the first time in more than a decade, rattling financial markets and dimming hopes for an end to a trade war that has dragged into a second year.
Wall Street notched its worst day of 2019 on Monday. Major U.S. stock indexes were trading higher on Tuesday.
China’s central bank said on Tuesday that Washington’s currency move would “severely damage international financial order and cause chaos in financial markets,” while
