US President Donald Trump decried what he called China’s “massive” intervention to suppress the yuan, portraying the US as the beneficiary of his tariffs on Chinese imports and suggesting — despite recent evidence to the contrary — that prices aren’t rising.
“Through massive devaluation of their currency and pumping vast sums of money into their system, the tens of billions of dollars that the US is receiving is a gift from China,” Trump said on Twitter on Tuesday. “Prices not up, no inflation. Farmers getting more than China would be spending. Fake News won’t report!”
Data released on Tuesday from the Labor Department, shortly before Trump’s tweet, signalled that inflation may be firming. A key measure of US consumer prices unexpectedly accelerated in July in a broad-based advance.
Last week the Trump administration branded China a currency manipulator. The announcement by the US Treasury Department came hours after China allowed the yuan to weaken to more than 7 per dollar, a line it hadn’t crossed in over a decade.
Separate figures from the Treasury Department sho-wed that while income from tariffs imposed by the Trump administration on China are still a modest source of revenue for the US, the levies helped almost double customs duties to $57 billion in the fiscal year so far.
US delays 10% tariffs on some Chinese goods
The Trump administration will delay until mid-December the 10 percent tariff on some Chinese products on many holiday-shopping lists.
By granting a grace period for everyday items like phones and toys, US concession appears designed to avoid any disruption or price increases for American consumers heading in-to final four months of year — from back-to-school pu-rchases to Christmas shopping. Any goods imported for holiday sales would need to arrive several weeks before December 15.
The announcement also came as the two sides spoke for the first time since the recent escalation in tensions.