WASHINGTON, (Sputnik) – President Donald Trump on Tuesday dismissed fears about the possible economic fallout of an escalating tariff dispute with China, saying the United States is in a “very strong position” as investors pour money into the country.
The US Treasury Department on Monday said it had officially designated China as a currency manipulator and would work with the International Monetary Fund to address the issue.
China’s central bank in response warned that Washington’s move undermined international principles and would result in extremely negative consequences for the global economy.
Earlier, Chinese currency fell to its lowest-ever level breaching the seven yuan-per-dollar threshold during volatile trading amid fears of an escalation in Beijing’s trade dispute with Washington.
The US currency accusation comes amid a protracted trade dispute that began in June 2018, when Trump announced he would impose tariffs on $50 billion worth of Chinese imports in a bid to balance the trade deficit. Since then, the two countries have introduced several rounds of tit-for-tat tariffs.