Chinese Yuan Falls to Lowest Level Since 2007 After Trump Tariffs Kicked In
President Trump’s “reciprocal” tariffs on dozens of countries including China took place on Wednesday. That included the 104% tariff on Chinese goods entering the US.
Already, the administration’s tariffs plan are specifically hitting China hard.
The Chinese yuan fell to its lowest level in 17 years since 2007. On Wednesday the yuan ended the day at 7.3498 to the US dollar.
China has turned to the European Union and the Southeast Asian Nations (ASEAN) as the trade war with the US takes its toll.
The South China Morning Press reported:
Commerce Minister Wang Wentao held a video call with EU Trade Commissioner Maros Sefcovic on Tuesday, during which both sides agreed to immediately begin negotiations on electric vehicle (EV) pricing and discuss investment ties in the auto sector, according to a statement released by China’s Ministry of Commerce on Thursday.
They also signalled their readiness to launch market access talks as soon as possible and supported the resumption of a bilateral trade remedy dialogue to address trade frictions related to EU concerns about the diversion of Chinese exports previously destined for the US.
The concrete discussion between Wang and Sefcovic followed a more wide-ranging meeting between Premier Li Qiang and European Commission President Ursula von der Leyen earlier on Tuesday.
Stocks climbed higher on Thursday.
Via ABC Eyewitness News.
Hong Kong’s Hang Seng Index climbed 2%, the Shanghai Composite Index jumped 1.1% and the Shenzhen Component Index rose 2.2%.
In Europe, the pan-continental STOXX 600 index jumped more than 7%.
Upon opening, Britain’s FTSE 100 climbed 6%, France’s CAC 40 6.4%, Germanys DAX 8%, Italys FTSE MIB 7.5% and Spains IBEX 7.2%.
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