Trump declared that China's manipulation of currency to fall the impact of tariffs could backfire.

U.S. President Donald Trump accused Beijing of manipulating currency to offset the impact of tariffs, warning that this behavior could backfire on the Asian oil-importing nation. Overseas yuan fell to 7.42 per dollar Just hours before the latest retaliatory tariffs from the United States against China took effect, U.S. President Donald Trump accused Beijing of manipulating currency to lessen the impact of the punitive tariffs. Speaking at an event of the National Republican Congressional Committee on April 8, Trump criticized this policy, which he claimed was making things difficult for the United States, without clearly explaining why. The President of the United States made these comments as China’s yuan approached its lowest exchange rate against the dollar in 17 years. According to a report by Nikkei Asia, the domestic yuan, trading within a 2% range of the reference rate set by China’s central bank, fell to 7.35 yuan per dollar in the morning session on April 9. Meanwhile, the freely traded yuan overseas dropped to a low of 7.42 yuan per dollar the previous day. Although the People’s Bank of China (PBOC) is said to have set the exchange rate, also known as the reference rate, in accordance with the fundamentals of the economy, critics believe that they began to set a weaker rate after Trump imposed a 34% “reciprocal” tariff on Liberation Day. In response, China imposed a reciprocal tariff rate of 34% on imports from the U.S., to which Trump reacted by adding an additional 50% tariff. Trump’s latest tariff means that imports from China into the United States will face an effective tariff rate of 104%. China’s currency manipulation allegations Meanwhile, Trump criticized China’s alleged currency manipulation tactics. He argued that this approach could backfire on China, a country that imports a significant amount of oil. “But in the end, it’s not good because they have to buy oil. We don’t need oil and gas, we have more than any other country, [but] they have to buy and that’s what hurts them,” Trump said. The allegations that China has been manipulating its currency have long strained its relationship with the United States. Successive U.S. administrations have resorted to various measures, including threatening to label China a currency manipulator, as part of efforts to pressure Beijing to abandon this practice. In 2019, the U.S. government, then under President Trump, labeled China as a currency manipulator after the Chinese yuan depreciated against the U.S. dollar. This was the first time the U.S. made such a designation since 1994. It is unclear what measures the Trump administration would take to punish China for engaging in this activity this time. ⚠️IMPORTANT! If you like this topic, don’t forget: • Follow me @blogtienso for more interesting content! • Like, share and leave a comment 💖 and don’t forget DYOR! #Write2Earn #Write\u0026Earn $BTC {spot}(BTCUSDT)