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.