Traders work after the opening bell at the New York Stock Exchange on August 5, 2019 in New York City. (Photo: Johannes Eisle/AFP/Getty Images)
Aug 05, 2019
U.S. stocks tumbled Monday on the heels of news that China is devaluing its currency in response to President Donald Trump's tariff war.
The Dow Jones Industrial Average posted a loss of 767 points by the close of business as world markets also fell to the news that the Chinese yuan was reduced to its lowest valuation in a decade.
The move came after Trump's announced tariffs last week on $300 billion in Chinese goods.
NPR reporter Jim Zarroli laid out what the currency devaluation could mean for U.S. businesses:
The decline makes Chinese imports in the United States less expensive, and thus makes U.S. companies less competitive. It also lowers profits for U.S. companies that do business in China.
"If this was an all out currency war--the U.S. would hands down lose," tweeted strategist Viraj Patel. "Beijing far more advanced in playing the currency game and [has] bigger firepower."
Trump took to Twitter to vent his frustrations Monday.
"China dropped the price of their currency to an almost a historic low," the president tweeted. "It's called 'currency manipulation.' Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!"
Join Us: News for people demanding a better world
Common Dreams is powered by optimists who believe in the power of informed and engaged citizens to ignite and enact change to make the world a better place. We're hundreds of thousands strong, but every single supporter makes the difference. Your contribution supports this bold media model—free, independent, and dedicated to reporting the facts every day. Stand with us in the fight for economic equality, social justice, human rights, and a more sustainable future. As a people-powered nonprofit news outlet, we cover the issues the corporate media never will. |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
U.S. stocks tumbled Monday on the heels of news that China is devaluing its currency in response to President Donald Trump's tariff war.
The Dow Jones Industrial Average posted a loss of 767 points by the close of business as world markets also fell to the news that the Chinese yuan was reduced to its lowest valuation in a decade.
The move came after Trump's announced tariffs last week on $300 billion in Chinese goods.
NPR reporter Jim Zarroli laid out what the currency devaluation could mean for U.S. businesses:
The decline makes Chinese imports in the United States less expensive, and thus makes U.S. companies less competitive. It also lowers profits for U.S. companies that do business in China.
"If this was an all out currency war--the U.S. would hands down lose," tweeted strategist Viraj Patel. "Beijing far more advanced in playing the currency game and [has] bigger firepower."
Trump took to Twitter to vent his frustrations Monday.
"China dropped the price of their currency to an almost a historic low," the president tweeted. "It's called 'currency manipulation.' Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!"
U.S. stocks tumbled Monday on the heels of news that China is devaluing its currency in response to President Donald Trump's tariff war.
The Dow Jones Industrial Average posted a loss of 767 points by the close of business as world markets also fell to the news that the Chinese yuan was reduced to its lowest valuation in a decade.
The move came after Trump's announced tariffs last week on $300 billion in Chinese goods.
NPR reporter Jim Zarroli laid out what the currency devaluation could mean for U.S. businesses:
The decline makes Chinese imports in the United States less expensive, and thus makes U.S. companies less competitive. It also lowers profits for U.S. companies that do business in China.
"If this was an all out currency war--the U.S. would hands down lose," tweeted strategist Viraj Patel. "Beijing far more advanced in playing the currency game and [has] bigger firepower."
Trump took to Twitter to vent his frustrations Monday.
"China dropped the price of their currency to an almost a historic low," the president tweeted. "It's called 'currency manipulation.' Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!"
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.