American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
Recent trade friction between the two Asian powerhouses has morphed into a dispute with political implications that go far beyond the region.Asia Politicsread more
China's yuan and the Australian dollar regained some poise on Tuesday after upbeat comments from U.S. President Donald Trump suggested trade talks with Beijing could yet make headway.
The Chinese currency sank to a 2019 low of 6.92 on Monday in response to Washington and Beijing raising tariffs on the other's goods.
But the yuan managed to break a six-day losing streak on Tuesday and rose 0.25% as broader sentiment stabilised after Trump said he expected Sino-U.S. trade negotiations to be successful.
China would be likely to intervene to stop any plunge through 7 against the dollar and could sell its vast holdings of Treasuries as a negotiation tactic against the United States.
Analysts are trying to gauge what the net effect of permanent U.S. tariffs on Chinese imports would be on the dollar.
The only obvious impact on currencies is elevated risk aversion which tends to benefit conventional safe havens such as the Swiss franc and the .
"Trade wars do not benefit the dollar. If you look at the yen/dollar pair reacted to China announcing tariffs on U.S. goods it was clearly not positive for U.S. assets," said Viraj Patel, a currency strategist at Arkera, a financial technology firm.
The managed to firm a tenth of a percent to $0.6952 after brushing its lowest since early January earlier in the session.
The Aussie is often seen as a proxy for Chinese growth because of Australia's export-reliant economy and China being the main destination for its commodities.
The euro rose 0.15% to $1.1238.
"The euro has been resilient despite the latest bout of trade tensions and it's probably down to people who were short euros vs emerging market currencies and are now buying euro back and unwinding euro hedges," said Stephen Gallo, European head of FX strategy at BMO Capital Markets in London.