FX.co ★ Offshore Yuan Falls on Tariff Uncertainty

The offshore yuan depreciated to approximately 7.31 against the dollar on Thursday, undoing the previous session’s gains as investor caution returned, spurred by renewed concerns over US-China trade relations. The White House issued a fact sheet illustrating that certain products are subject to combined tariffs reaching as much as 245%, prompted primarily by China’s recent tariff increase on US imports, which can be as high as 125%, as part of its retaliatory actions. In response, China’s Foreign Ministry dismissed these developments, declaring that Beijing "will pay no attention to the US tariff numbers game." Despite the growing tensions, there are still potential avenues for progress. Reports indicate that China remains open to trade discussions, on the condition that the US ceases its aggressive strategies. Beijing has called on Washington to halt its severe pressure campaign, characterized by threats and coercion, advocating instead for dialogue founded on equality, mutual respect, and reciprocal benefit.