“If you put billions of dollars (in Chinese goods) under tariffs, don’t you think it would affect the currency?” Rogers told RT. He added that while the People’s Bank of China actually can have a hand in changing the
“Anybody who knows any basic economics knows that if you hit a huge economy with lots of
The weaker yuan can actually help Beijing to offset the impact of Washington’s tariffs on China’s exports. As its national currency declines, Chinese goods become cheaper to sell abroad. So, the US fears that it would not be able to sell its own goods while there are plenty of cheaper Chinese products on the market thanks to a weaker
“It makes American goods more expensive and therefore more difficult for America to sell goods in the world market,”Rogers explained.
However, the falling yuan has a downside, according to Rogers, such as an increase in the cost of living and production as everything China imports
The trade conflict between the world’s biggest economies has led to tit-for tat tariffs
Beijing ordered a halt on purchases of US agricultural exports in response, in a move that could hurt a key Trump constituency, American farmers. Thus, the Chinese government might be planning to hit back at where Trump’s
No one ever wins in a trade war, and it concerns not only the conflicting
- Source, Russia Today
