Calla Kessler | The Washington Post | Getty Images

Donald Trump on tuesday said that the US has gained a very ' over China in current US/China trade war. He said that money is pouring from China and the rest of the world for the reason of Safety, Interest rates and investment. He also said that many companies are also heading US, a beautiful thing to watch.

"Massive amounts of money from China and other parts of the world is pouring into the United States for reasons of safety, investment, and interest rates! We are in a very strong position. Companies are also coming to the U.S. in big numbers. A beautiful thing to watch!"

Trump earlier announcement of imposing 10% percent additional tariff was followed by an aggressive response from China as Chinese government asked its companies to stop buying US agricultural goods. Further in response to US additional tariffs on Chinese goods, China has weakened its currency 'yuan' to 7 per Dollar in the market to give a boost to its exports.

The trade war between the US and China has affected almost every thing that comes under the trade and now its have an effect on the currencies. Trump has called China the ‘'Currency manipulator' after China weakens its currency yuan. 

"China dropped the price of their currency to an almost a historic low. It’s called “currency manipulation.” Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!"

Allowing the yuan to depreciate is one such measure. A weaker yuan makes Chinese goods relatively cheaper to buyers outside the country, so that could offset the additional levies that American importers must pay as a result of Trump’s tariffs. Such a move also makes the U.S. dollar stronger in relative terms — which the American president has said he dislikes.

Still, the move by the U.S. Treasury marked further escalation in tensions between Washington and Beijing, according to analysts from Citi Research.

The analysts wrote in a Tuesday note they expect the U.S. to raise the tariff rate on the just-announced $300 billion tranche from 10% to 25% “as soon as next month.” That’s on top of the 25% tariffs already on $250 billion of U.S. imports from China — to which Beijing had retaliated with elevated levies on billions of American products that it buys. Reported by CNBC.

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