China Strikes Back in Trade Struggle with the US. Trade tensions between the US and China continue to increase now that Beijing has taken countermeasures in response to the threat of higher US import tariffs on Chinese goods.
Beijing allowed the yuan to fall to its lowest level in ten years on Monday and suspended the purchase of American agricultural products.
For over a year, China has been trying to persuade US President Donald Trump to refrain from higher import tariffs. Trump’s announcement encouraged China to hit back.
The new American sanctions would start in September. China had warned earlier that it would come up with countermeasures.
The announcement put pressure on the financial markets. Investors sought refuge in “safe” investments such as gold, the Japanese yen and US government bonds.