China indicated that it wouldn’t immediately retaliate against the latest U.S. tariff increase announced by President Donald Trump last week, emphasizing the need to discuss ways to deescalate the trade war between the world’s two largest economies. “China has ample means for retaliation, but thinks the question that should be discussed now is about removing the new tariffs to prevent escalation of the trade war,” Ministry of Commerce spokesman Gao Feng told reporters in Beijing on Thursday. “China is lodging solemn representations with the U.S. on the matter.”
When asked if that meant China wouldn’t retaliate at all for the latest escalation by the U.S., Gao didn’t elaborate but repeated the same comments. China has hit back against each previous tariff increase by the U.S., so not responding in kind this time may signal a change in strategy.
The CAD is basically unchanged, analysts are awaiting for tomorrow’s GDP, expectations are for 3.0% rise quarter over quarter for Q2 of this year. Expect a narrow range today.
Currently Close Range
USDCAD 1.3299 1.3306 1.3273-1.3319
EURCAD 1.4702 1.4740 1.4695-1.4761
GBPCAD 1.6221 1.6249 1.6180-1.6264