Trump's Tariffs Are Weighing on Yuan, IIF's Chief Economist Says

The video discusses the potential for a currency and trade war between the US and China, focusing on the devaluation of the yuan and its implications. Robin Brooks, an economist, explains how trade and currency wars are linked, with China potentially devaluing its currency to combat US tariffs. The risks of currency flight and its impact on the Chinese middle class are highlighted, along with the economic concerns for both countries. The discussion also covers market reactions to currency dynamics and the potential for further tariffs.

What concerns do policymakers have regarding capital flight in relation to currency depreciation?

How might the U.S. administration react to changes in currency dynamics according to the text?

What is the significance of the yuan's value in relation to U.S. tariffs?