The trade war between the world's two largest economies may now lead to a currency war as the U.S. Treasury Secretary says Washington will closely review whether the Chinese yuan has been manipulated.
Steven Mnuchin also reiterated that the U.S. could end up imposing tariffs on every single product imported from China.
Kim Hyo-sun reports.
U.S. Treasury Secretary Steven Mnuchin says Washington is monitoring the recent weakness of the Chinese yuan to see whether the currency has been manipulated.
According to CNBC, Mnuchin stressed during an interview in Brazil that the U.S. will review very carefully whether Beijing has manipulated the yuan.
He explained that such a review is carried out as part of the U.S. Treasury's bi-annual report on currency manipulation.
In April and October each year, the U.S. Treasury releases a list of countries whose currency practices need monitoring and designates countries as currency manipulators.
Pundits say the U.S. may label China as a currency manipulator in its report released in October,... following the Trump administration's additional tariffs imposed on goods imported from the country.
Mnuchin also threatened China, saying President Trump's earlier comments that he's ready to slap tariffs on every single Chinese good imported to the U.S.,... which amounts to some five hundred U.S. billion dollars could become reality.
Stating that he thinks Beijing is manipulating its currency during an interview with CNBC last Friday,... President Trump warned China that he's ready to take the ultimate step on Chinese imports should the need arise.
Kim Hyo-sun, Arirang News.