US - China Relations: Trump Says Yuan Decrease Result Of Currency Manipulation

President Trump on Monday claimed that a historic low for the Chinese yuan is due to currency manipulation on behalf of the Chinese government.

"China dropped the price of their currency to an almost historic low," Trump tweeted. "It's called 'currency manipulation.' Are you listening Federal Reserve? This is a major violation that will greatly weaken China over time!"

Later in the day, Trump continued his tweetstorm on China's currency, accusing it of using "manipulation to steal our businesses and factories."

The Chinese yuan on Monday weakened to below 7 to U.S. dollar, its lowest value in over a decade. The People's Bank of China has said that it will "not use this exchange rate for competitive purposes" or for trade disputes.

"The fact that they have now stopped defending 7.00 against the dollar suggests that they have all but abandoned hopes for a trade deal with the U.S.," Capital Economics Senior China Economist Julian Evans-Pritchard told Reuters.

The tweets come as the White House has launched an economic assault on China, slapping tariffs from 10% to 25% on virtually all Chinese goods coming into the U.S.

In retaliation, Beijing has levied its own tariffs on U.S. agricultural goods, which has forced the Trump administration to financially bail out the farming industry.

Trump has also made claims that the Euro is being manipulated.

An idea that has reportedly been floated at the White House has been for the U.S. to manipulate the dollar to stay competitive with cheap Chinese exports but Trump has rejected such proposals.

Trump has frequently said that China is "taking advantage" of the U.S. Although he believes his tariffs are leveling the playing field, critics say that the tariffs are a tax on the middle class, as big retailers such as Walmart have admitted that tariffs will increase prices for shoppers.