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The China confirmed reports that it was pulling out of U.S agriculture as a weapon in the ongoing trade war. A spokesperson for the Chinese Ministry of Commerce confirmed, Chinese companies have closed purchasing U.S agricultural products in response to President Trump’s new 10% tariffs on $300 billion of Chinese goods. This is a serious infringement of the meeting between the heads of state of United states and China , the Minister of Commerce stated in a statement of Monday.
The department also suspected it would not rule out tariffs on newly purchased agricultural goods after August 3. The China is one of the prime buyers of U.S agriculture. Bloomberg news stated in a report that Beijing may stop importing them entirely in reply to new tariffs by the United States. According to reports stated by Chinese State media, it would involved considering slapping tariffs on U.S agricultural products that it previously bought.
Those stories helped aggravate fears on Wall Street approaching stocks to their worst day of the year. Now that China has established the reports, it could put additional pressure on equities. The Stock futures failed Monday, leading to 480 point drop on Tuesday. The US farming has been a sizzling button issue in the ongoing trade war. The President stated that he had protected large quantities of agricultural purchases When he met with President Xi Jinping at the G-20 summit in June. Trump later accuse China of not following through, leading him to proclaim on Thursday.
The China has traditionally managed its currency, let the Yuan break to its lowest level against the dollar in more than 10 years. The Treasury department labeled China as a currency manipulator on Monday evening, Subsequent tweets by the president with the same allegation. This is a major breach which will subsequently weaken China over the time the Trump stated.