FX.co ★ Offshore Yuan Pressured by US Tariff Moves

The offshore yuan has maintained its recent decline, stabilizing around 7.32 per dollar, as the market continues to express concerns over escalating US-China trade tensions. This comes in light of President Trump's advancement of new tariff investigations and President Xi Jinping's call for solidarity against what he describes as trade "bullying." The United States is progressing with investigations into potential national security threats posed by imports in the semiconductor and pharmaceutical industries—sectors that are heavily dependent on Asian, particularly Chinese, supply chains. This action could potentially lead to new tariffs and further exacerbate the ongoing trade war. These developments arise despite recent reversals on tariffs, such as the suspension of reciprocal levies, temporary reprieves for consumer electronics, and speculation about a possible halt on the 25% tariffs imposed on automobile imports. Concurrently, Chinese President Xi, embarking on a diplomatic tour across Southeast Asia, has reiterated the sentiment that "no one wins in a trade war," underscoring Beijing's strategy to counteract US pressures by bolstering alliances with ASEAN countries.