On August 1, 2019, U.S. President Donald Trump announced new tariffs on Chinese goods would come into effect on September 1st. The tariffs would be levied at an initial rate of 10 percent on the remaining $300 billion of Chinese goods that had not been included in the previous rounds of tariffs.
On August 5th, China retaliated by instructing their companies to suspend purchases of U.S. agricultural goods. Simultaneously, the Chinese renminbi breached a price level not seen since 2008. This event prompted the U.S. Department of Treasury to formally declare China a currency manipulator, further escalating tensions between the two nations.
Despite the actions taken by both countries, President Trump described the latest round of talks, held in Beijing the week of July 29, as “constructive”. Additionally, U.S. and Chinese trade negotiators are still expected to meet for a new round of talks in September.