USD/CNY daily chart
The yuan currency was the first line of defense against Trump’s tariffs. And Beijing definitely prepped for that as it allowed the currency to fall considerably since Trump won the presidency in November. But after the recent talks between Trump and Xi, the yuan is now clawing back losses as tariff fears look to be subsiding.
The latest top for USD/CNY is around the 7.33 mark and with “positive talks” between Trump and Xi, it looks like China will be avoiding harsh tariffs – at least for now. That’s a far cry from the sure fire promise from Trump during his campaign that he will impose 60% tariffs on China.
If this is any indication of what Trump might do next, it looks like Beijing is quite certain that Trump and Xi have a certain understanding now that tariffs will just remain as a threat for the most part.