August 7, 2019

Anna Murray 

The United State Treasury Department officially claimed that China was the currency manipulator recently because China’s central bank devalued its currency yuan, falling into 7 per dollar. 

This action to weaken the rate of currency caused the US President Donald Trump to tweet his statement on twitter. Many experts considered that this move was just to intensify the tension between China and United States. 

Since 2008, it was the first time that China’s currency fell to the 7 per dollar on August 5. This move causes the tragedy of the global market. Dow Jones Industrial Average Index dropped nearly over 900 points. Many financial experts worried that the trade war will happen soon. 

In 2018, China was the fourth-largest market for the United States foods and agriculture export. Recently, the severe weather has already caused some difficulties to the farmers in the United States. Because of the trade war, famers started to worry about the export of almond. 

Almonds are grown in California, which occupies 80% of almonds around the world. The 50% of tariff makes it difficult to export the almonds to China. Farmers in the United States faced the difficulty. However, President Trump strongly believed that tariff would only have negative influence on China. 

The items to increase the tariff target on daily necessities and electronic products. This might cause the increase of inflation and have some negative influence on the U.S. market. 

Photo:Webshot.