Trump's 'scorched earth' trade war could spark global recession

credit;PA

Donald Trump's scorched earth trade war threatens to spark a
global recession, according to finance experts.

The Yuan fell below 7 per cent the very first time in a decade now amid speculation that the Chinese government is manipulating the currency.

Beijing has previously sought to avoid the currency from
slipping below the symbolic level, but the escalation of the trade war, sparked
by fresh US tariff threats, is viewed to have prompted the policy shift.

Dr Kerstin Braun, President of Stenn, a global
supplier of trade finance headquartered working in london, said the trade war between
the US and China could spark a global recession.

She said: “The US-China trade war has reached an unprecedented stage, where Trump is doing offers with global economies.

“Germany is on the point of economic meltdown, while markets
all over the world are suffering.

“His advisors have previously warmed him around the limited gains
from the 'scorched earth' trade war but he's not listening.

“He lives and dies by the markets, and there is a real worry
Trump will try to tank the dollar in retaliation.

“We can confidently say that a global recession is on the
horizon if both Yuan stays at this level and tariffs remain for 4-6 months.

“A 25 % tariff on all $500 trades for four months
would take the economy right into a recession.

“The trade war can't be solved by economic powers
only, and is now becoming a larger problem for the worldwide economy.”