Yuan Plunges to 17-Year Low Against Dollar

|By Adekunle Adejumo-

-China’s economic team plans urgent meeting as US imposes 104% tariffs
-Trade tensions escalate with Trump’s ‘reciprocal’ policy in full force

China’s national currency, the yuan, on Wednesday slumped to its lowest value in 17 years against the US dollar, a development that signals deepening trade tensions between the world’s two largest economies.

According to Reuters, the onshore yuan closed domestic trading at 7.3498 per dollar, its weakest finish since December 2007.

The sharp fall followed a fresh round of punitive tariffs from the United States, led by President Donald Trump, who implemented a series of “reciprocal” duties targeting foreign imports. Among them were massive 104% tariffs on Chinese goods, which came into effect the same day.

China, in a swift response, has slapped steep tariffs on American imports, intensifying the economic standoff. Meanwhile, key Chinese stakeholders are expected to meet urgently to discuss stabilization strategies aimed at reviving market confidence and boosting the nation’s economy.

Although President Trump recently announced temporary relief from duties on other countries, he maintained and even increased tariffs on Chinese products, further fueling concerns about prolonged economic strain.

The currency plunge and ongoing tit-for-tat tariffs have rattled global markets, leaving economists and investors on edge as trade negotiations remain uncertain.