U.S.-China Trade War Intensifies

A woman walks by a money exchange shop decorated with different countries currency banknotes at Central, a business district in Hong Kong, Tuesday, Aug. 6, 2019. China's yuan fell further Tuesday against the U.S. dollar, fueling fears about increasing global damage from Beijing's trade war with President Donald Trump.
A woman walks by a money exchange shop decorated with different countries currency banknotes at Central, a business district in Hong Kong, Tuesday, Aug. 6, 2019. China's yuan fell further Tuesday against the U.S. dollar, fueling fears about increasing global damage from Beijing's trade war with President Donald Trump. Kin Cheung / AP Photo
A woman walks by a money exchange shop decorated with different countries currency banknotes at Central, a business district in Hong Kong, Tuesday, Aug. 6, 2019. China's yuan fell further Tuesday against the U.S. dollar, fueling fears about increasing global damage from Beijing's trade war with President Donald Trump.
A woman walks by a money exchange shop decorated with different countries currency banknotes at Central, a business district in Hong Kong, Tuesday, Aug. 6, 2019. China's yuan fell further Tuesday against the U.S. dollar, fueling fears about increasing global damage from Beijing's trade war with President Donald Trump. Kin Cheung / AP Photo

U.S.-China Trade War Intensifies

China on Monday allowed its currency to drop to the weakest level in over a decade, and the Trump administration accused China of manipulating its currency to gain an “unfair competitive advantage in international trade.” The Dow fell nearly 3% on Monday. Last week, Trump also announced plans to impose a 10% tariff on $300 billion of U.S. imports from China. Only the European Union exports more goods to the U.S. than China, meaning new tariffs would have a wide-reaching effect on the U.S. economy. Joining us to discuss what recent developments mean for any potential trade deal between the U.S. and China and whether we are heading toward a recession is Phil Levy. Levy is chief economist for Flexport and former senior fellow on the global economy at the Chicago Council on Global Affairs.