Investor concerns about the escalating trade war between the United States and China once again reared their heads on Tuesday, sending the yuan to 10-year lows and keeping the dollar strong as traders flocked to the safe-haven currency. The dollar index gained another 0.10 percent as of 2:16 p.m. HK/SIN on Tuesday, trading at 96.68 .DXY. The greenback was up against most of its primary trading partners, with the exception of the Canadian and Australian dollars, where it eased 0.14 percent and 0.50 percent respectively. The dollar gained 0.29 percent against the yen, trading at 112.69. It also traded up 0.06 percent against both the euro and the British pound.
According to Bloomberg, Washington is planning to announce fresh tariffs on all remaining Chinese imports by early December if November’s talks between President Trump and Chinese leader Xi Jinping are unsuccessful. The remaining Chinese imports to the U.S. are valued over $257 billion, which would more than double the current tariffs on $250 billion of Chinese goods. If implemented, the upcoming round of tariffs would hit consumer products especially hard, especially clothing, footwear, cell phones and computers.
Singapore’s Minister for Trade and Industry, Chan Chun Sing, said on Monday that the continuing trade war could cause a “double whammy” for the global economy, harming both investor confidence and investments in a time of slowing growth, which could be especially harmful for the global economy. The strengthening dollar has done little to improve matters, making U.S. products more expensive for foreign buyers and scaring investors about long term growth.