Trump Won't Devalue Dollar Amid Trade War With China

Saturday, 10 Aug, 2019

In May, the US Department of Commerce blacklisted Huawei over national security concerns, requiring American companies to get a license in order to conduct business with Huawei.

President Donald Trump cast more doubt on chances for a trade deal with Beijing on Friday, signaling he might cancel talks set for September amid an intensifying US-China trade war. The ongoing impasse highlights a lack of trust between both sides, which will likely further complicate the process to reach an agreement.

The Bloomberg report on Huawei, a telecoms equipment maker that Washington has accused of espionage and stealing intellectual property, sparked a flurry of risk-off trades which also pushed up gold prices and sent US stock futures lower.

Unipec, the trading arm of state refiner Sinopec, has fixed the Very Large Crude Carrier (VLCC) Anne to load USA crude in mid-September, according to a shipbroker and Refinitiv Eikon data.

"We have the safest currency of the world".

Shipments to Europe and Southeast Asia-China's top two trading partners-also bounced back, while the decline in exports to the US eased after President Trump and Chinese President Xi Jinping struck a conciliatory tone on trade at the Group of 20 summit in Japan in June.

The USDA report confirmed that export shipments of USA agricultural goods have continued despite the rising tensions. That move came after China stopped buying USA agricultural products, which was retaliation against the new 10% tariffs.

"We don't have to - we have such a strong dollar", he said in response to FOX Business' Blake Burman asking whether the Trump administration had plans devalue the currency during a press gaggle at the White House on Friday. Then, he noted the US will cut ties with Chinese telecom giant Huawei.

With Chinese buying on hold, US exporters will instead focus on shipping orders made earlier this year when the two sides appeared headed for a deal, a list that includes more than 4 million tonnes of soybeans and almost 103,500 tonnes of pork.

Yi Gang, the PBOC governor, reiterated in a statement on 5 August that China will not pursue a competitive devaluation of the yuan and will not use exchange rates as a means for competition or coping with trade disputes.

Based on these rates, USA customs agents will begin collecting duties from importers.

The US Treasury then declared China a currency manipulator, after the yuan lost value in the face of the new round of tariffs due to take effect September 1.

However, the funds would be returned if the department reverses its decision later this year or if an independent trade commission finds the subsidies did not harm USA industry.