China's Central Bank Directs State Banks To Reduce US Dollar Purchase Amid Trade War With America

Beijing: Amid a full scale tariff war with United States, China’s central bank on Wednesday directed its state-owned banks to scale down use of US dollar and make efforts to weaken the American currency. China's central bank step is being seen as an attempt to safeguard the local currency after it slapped a whooping 84% tariff on United States, day after Trump administration announced 104% trade duties on the country.

US and China in full blown tariff war

The tariff war between United States and China is fully out in open as both the nations are slapping reciprocal trade duties turn by turn on each other as the world awaits to see who will bow down first.

What triggered US-China trade war?

US President Donald Trump first imposed 20% tariffs on China in February along with Canada and Mexico. At that time, China issued a statement that it was ready for a war, in this case a tariff war, if that's what the United States is really looking for.

Later on April 2, Donald Trump, in a much anticipated move, announced reciprocal tariffs on 133 nations including China, India, Japan, UK, Europe, UAE, Saudi Arabia, Thailand, Australia, New Zealand, Brazil among many other nations. US imposed 10% reciprocal tariffs on Singapore even when the country doesn't impose any tax on imports from United States. 

Donald Trump levied 34% reciprocal tariffs on China, to which Beijing responded with equal force and announced imposition of same amount of tariffs on the United States.

US President Trump said that China's reaction was a miscalculated one as they acted in panic instead of negotiating a deal with him.

After China hit back with retaliatory tariffs, Trump threatened Beijing with additional 50% tariffs if China didn't withdraw its retaliatory trade duties.

Trump gave an ultimatum till April 8 to China to withdraw the tariffs saying failing to do so will force him to impose additional 50% tax which will be effective from April 9 onwards.

China responded to Trump saying they will not allow to be intimidated and blackmailed due to tariffs and conveyed it to the United States that it was really not a way to deal with them.

Trump kept his words, imposes whopping 104% tariffs on China 

As promised, Trump after China failed to withdraw 34% retaliatory tariff, imposed a mammoth 104% reciprocal trade duty on Beijing. Following this move, China was quick to respond back and slapped additional 84% duties back on America.

Amid the ongoing trade war, Donald Trump in an event made a remark that world leaders were requesting him to conclude a deal.