Original Scenario, Chinese charges US consumers (700 Billion Yuan)for goods, at exchange rate of 7 to 1 US consumers pay $100 Billion for good.
Trump enacts 25% Tariff, Chinese responds by devaluing their currency so now it’s 8.75 Yuan per Dollar
So the same goods of 700 Billion Yuan now costs the US consumers $80 Billion, with the 25% tariff, the US consumer still pays $100 Billion same as before, except now $20 Billion of that $100 goes to the US Government.
Net result, a transfer of wealth of $20 Billion from China to the US government.
The dow crashing imo is some idiot pearl clutching Bloomberg reading investors... and maybe some idiot who bought Yuans and loaned China. Ha! Eff em.