The dollar fell yesterday afternoon but has found some support this morning as the US-China trade war intensifies. China retaliated to the US’s tariff hikes with taxes of its own. It announced plans to hike tariffs on American goods bought by Chinese companies, which will kick in on the 1st of June.
This gesture indicates that Beijing are not prepared to back down. They have said that that they will not swallow any ‘bitter fruit’ that harmed its interests. In an official statement, China said that the US is ‘jeopardising the interests of both sides and not meeting the general expectations of the international community’.
Meanwhile, President Trump has said that we’ll know in “three to four weeks” if the trade talks have been successful. It seems, however, that the rhetoric surrounding these talks has the tendency to change very quickly.
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