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Marketplace Morning Report

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Aug 21, 2019

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Decline of China’s currency lessens bite of U.S. tariffs

Amy Scott Aug 2, 2018
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The trade story of the day is actually more of a currency story. As you know, the Trump administration has proposed another round of tariffs on some $200 billion worth of Chinese products — ranging from tobacco to dog food to plywood. Now, the president is threatening to more than double the size of that tariff from 10 percent to 25 percent. One reason: the falling value of China’s currency. The yuan is trading at a 14-month low against the U.S. dollar, blunting the intended effect of those tariffs.

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