China's policymakers are considering allowing the yuan to weaken in 2025 in response to potential higher U.S. trade tariffs under Donald Trump's administration. Trump has announced plans for a 10% universal import tariff and a 60% tariff on Chinese goods. The yuan's depreciation could mitigate tariff impacts by making exports cheaper and enabling looser monetary policies. Analysts warn that aggressive currency devaluation could trigger global trade retaliation. Sources suggest the currency could drop to 7.5 per dollar, reflecting a 3.5% decline from current levels.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02China's policymakers are weighing the option of allowing the yuan to weaken in 2025
00:06in response to potential higher U.S. trade tariffs under Donald Trump's administration.
00:11Trump has announced plans for a 10% universal import tariff and a 60% tariff on Chinese goods.
00:18The yuan's depreciation could mitigate tariff impacts by making exports cheaper
00:22and enabling looser monetary policies. Analysts warn that aggressive currency
00:27devaluation could trigger global trade retaliation. Sources suggest the currency
00:31could drop to $7.5 per dollar, reflecting a 3.5% decline from current levels.