Trump tweeted that "a lot of money is pouring into the U.S. economy from China and the rest of the world". He announced last week that he would impose a 10% tariff on another $300 billion of Chinese imports to the United States from September 1.
In the face of China's retaliation, he also promised to support American farmers. China has stopped purchasing U.S. agricultural products and raised concerns about imposing tariffs on U.S. agricultural products.
American farmers are Trump's main political supporters, and they are one of the hardest hit groups in the trade war. As the largest agricultural product exported by the United States, soybean exports to China fell to the lowest level in 16 years in 2018.
Although Trump played down the possibility of protracted trade disputes, St. Louis Federal Reserve President Brad said the Federal Reserve may not be able to shake off the turbulent global trading environment in the next few years.
"I think in the current environment, the uncertainty of the trading system is very high," Brad said in a speech on U.S. economic and monetary policy before the luncheon of the National Economists Club. "I don't think that uncertainty will dissipate in the next few quarters and years."
The U.S. Treasury Department announced Monday that it had identified China as manipulating the yuan's exchange rate. This is the first time since 1994 that the United States has labelled China as a currency manipulator. This has put a lot of pressure on China.
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