[jlalik0]

Trump mentioned that China is devaluing their currency and selling their goods in the US for less than it costs to produce them in China.

Trump didn’t say he WOULD impose a tariff, he said it was an option mentioning a possible 45% tariff, which Bush said would cause a trade war. (As we know, the Smoot Hawley Tariff caused an international trade war in 1930.)

Should the US keep trading with China without doing a thing differently?

Does China really do this?

How does China actually devalue its currency?

Thanks.

[johnwinters91]

See the US China trade relations post in the What’s Wrong With Textbook Economics forum. Professor Herbener did a great job explaining this stuff

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