Offshore yuan falls on concerns over tariff threats

The offshore yuan fell below 7.28 per dollar, continuing its decline from the previous session as investors reacted to concerns over US President Donald Trump's trade policies.

Offshore yuan falls on concerns over tariff threats

On Tuesday evening, Trump revealed plans to impose an additional 10% tariff on Chinese imports starting February 1, citing China's role in supplying fentanyl to Mexico and Canada. Although the proposed tariff is much lower than the 60% rate Trump had previously threatened, it aligns with the 10% pledge he made during his presidential campaign. The announcement followed a recent phone conversation between Trump and Chinese President Xi Jinping, where they discussed trade, fentanyl, and other key issues.

Potential tariffs on Mexico and Canada, too

Earlier in the week, Trump also proposed a 25% tariff on imports from Mexico and Canada, blaming them for facilitating undocumented migration and the flow of drugs into the US.