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| Trump accuses China of 'manipulating' its currency | Trump accuses China of 'manipulating' its currency |
| (about 9 hours later) | |
| US President Donald Trump has again accused China of manipulating its currency to combat US tariffs. | |
| The accusation, made in an interview with Reuters, resembles claims Mr Trump made during his 2016 campaign and repeated last month. | |
| The two countries are preparing to meet in Washington this week to discuss their trade fight. | |
| Many doubt that the talks, which involve lower-level officials, will be successful in defusing the tensions. | |
| Mr Trump told Reuters he did not expect much from the meeting, which follows failed negotiations this spring. | |
| He also said he had "no time-frame" in mind to bring the clash between the economic giants to a close. | |
| Analysts have already voiced fears that the trade war between the US and China could become a currency war as well. | |
| Trade war in progress | Trade war in progress |
| In July, the two countries imposed a first round of tit-for-tat tariffs affecting trade worth $34bn (£26.5bn). | |
| The US plans to impose import duties on a further $16bn in Chinese trade on 23 August. China has promised to retaliate in kind. | |
| The administration is also preparing additional tariffs on $200bn worth of Chinese goods, which are the subject of hearings in Washington this week. | The administration is also preparing additional tariffs on $200bn worth of Chinese goods, which are the subject of hearings in Washington this week. |
| This month, the administration announced that Mr Trump had asked his staff to consider taxes of 25%, instead of the 10% initially proposed. | This month, the administration announced that Mr Trump had asked his staff to consider taxes of 25%, instead of the 10% initially proposed. |
| At the time, officials disputed the notion that the higher tax was a response to the decline in the value of the yuan, but the president's comments to Reuters undermine that claim. | At the time, officials disputed the notion that the higher tax was a response to the decline in the value of the yuan, but the president's comments to Reuters undermine that claim. |
| "I think China's manipulating their currency, absolutely," Mr Trump told Reuters. | "I think China's manipulating their currency, absolutely," Mr Trump told Reuters. |
| During his campaign for president, Mr Trump also called China a currency manipulator but last year, after assuming office, he retracted those comments. | |
| What is currency manipulation? | |
| Blame at home | Blame at home |
| China's currency has shed almost 10% of its value against the dollar since the trade dispute started to intensify in April - a decline that has blunted the effect of the tariffs by making China's goods cheaper. | China's currency has shed almost 10% of its value against the dollar since the trade dispute started to intensify in April - a decline that has blunted the effect of the tariffs by making China's goods cheaper. |
| Mr Trump said he held the US Federal Reserve responsible for some of the currency shifts, noting that it has acted more quickly than other central banks to remove stimulus policies. | Mr Trump said he held the US Federal Reserve responsible for some of the currency shifts, noting that it has acted more quickly than other central banks to remove stimulus policies. |
| "We're negotiating very powerfully and strongly with other nations. We're going to win. But during this period of time, I should be given some help by the Fed. The other countries are accommodated," he told Reuters. | |
| In addition to China, he said, "I think the euro is being manipulated also." | In addition to China, he said, "I think the euro is being manipulated also." |
| 'Not thrilled' | 'Not thrilled' |
| President Trump also again criticised the Federal Reserve for raising interest rates. | President Trump also again criticised the Federal Reserve for raising interest rates. |
| The US central bank, which is led by Mr Trump's appointee Jerome Powell, has raised interest rates twice this year and is expected to do so again. | The US central bank, which is led by Mr Trump's appointee Jerome Powell, has raised interest rates twice this year and is expected to do so again. |
| The Fed has said the economy is strong enough to handle higher rates, which are intended to prevent uncontrolled price inflation. Analysts also link the rates to a stronger dollar. | The Fed has said the economy is strong enough to handle higher rates, which are intended to prevent uncontrolled price inflation. Analysts also link the rates to a stronger dollar. |
| Mr Trump is worried that the higher cost of borrowing will slow the economy. | Mr Trump is worried that the higher cost of borrowing will slow the economy. |
| "I'm not thrilled with his raising of interest rates, no. I'm not thrilled," he said to Reuters, repeating a criticism which he has made before. | "I'm not thrilled with his raising of interest rates, no. I'm not thrilled," he said to Reuters, repeating a criticism which he has made before. |