China’s Ministry of Commerce confirmed Monday that Chinese companies have stopped purchasing U.S. agricultural products after President Donald Trump threatened to impose new tariffs.
The move comes after Trump threatened to slap 10% tariffs on $300 billion worth of Chinese imports from September 1.
On the other side, The US has officially named China as a “currency manipulator”, a statement which will intensify tensions between the world’s two largest economies.
The announcement by the US Treasury follows a sharp fall in the value of the Chinese yuan against the dollar. The drop caught markets off-guard as Beijing usually supports the currency.
Last week, China pledged to retaliate after US President Donald Trump vowed to impose 10% tariffs on $300bn (£246.7bn) of Chinese imports.
The ongoing trade war between the world’s top two economies has sent shockwaves through global markets as a trade deal remains highly elusive.