FX.co ★ Offshore Yuan Dips on Tariff Uncertainty

The offshore yuan has depreciated to approximately 7.31 per dollar, following three consecutive sessions of gains, largely due to the market volatility caused by President Trump's tariff impositions and their subsequent postponement. Late on Friday, the White House announced exemptions from significant tariffs targeting smartphones, computers, and other electronics predominantly imported from China. However, President Trump indicated during the weekend that this relief would be temporary. He emphasized that these products would still incur the existing 20% tariffs on fentanyl and mentioned that a new tariff rate for semiconductors would be disclosed next week, further fueling uncertainty. In response, China's Commerce Ministry described the exemptions as a “small step” but called on the United States to eliminate the comprehensive 145% tariff on Chinese imports. Concurrently, it has been reported that President Trump is engaging in trade discussions with nations such as Vietnam, India, South Korea, and Japan, focusing on strengthening ties with strategic allies to mitigate China's global trade influence.