China has been accused by US President Donald Trump of currency manipulation to fight against tariffs imposed by US. These charges are similar to the ones claimed by the President in the year 2016 during his election campaigning. Till now, Trump refrained from using the accusations. These fresh charges come in the wake of the meeting between the two nations in Washington. The talks which are scheduled for this week will be about a solution regarding the present trade conditions.
The officers of the lower ranks are skeptical about the results of the discussion. Donald Trump is also not much hopeful about this. As informed to Reuters, they have one failed negotiations behind them which took place in March this year. He further added that he is not in a hurry to amend the differences between the two nations. Both the countries are at loggerheads and they are levying tariffs upon tariffs. In the month of July, this amounted to around $34bn. The US has plans of another such levy on trade imports from China worth $16bn which will be retaliated promptly by the opposing country China.
The US government is getting ready to levy extra charges on Chinese goods worth $200bn. This might be the agenda for the meeting this week in Washington. In a recent development, they have been instructed by President Trump to consider increasing of taxes to 25% which was earlier 10%. The officials argued that the instruction followed because of the decrease in the value of Chinese currency Yuan. The President has some other things in mind though as he is repeated his claims of China being a currency manipulator after 2016.
China’s currency value has downgraded by almost 10% against its counterpart US dollars. It has been seen as a repercussion of the ongoing trade fights which was at its high point in the month of April.