China’s state media has responded to a US decision to raise tariffs on Chinese goods with a barrage of nationalist commentary, escalating official rhetoric in what analysts say is a bid to bolster home support for a protracted fight with Washington.
The renminbi suffered its worst one-day drop since August last year on Monday after the bitter trade dispute between the world’s largest economies escalated over the weekend when the latest round of talks in Washington ended without a deal.
The US on Friday raised tariffs on $200bn of Chinese goods from 10 per cent to 25 per cent after stating that China had “reneged” on previous agreements made during the talks. US President Donald Trump also instructed US trade representative Robert Lighthizer to impose 25 per cent tariffs on a further $300bn of goods if there was no breakthrough in talks.