No deal yet. So how? So US-China trade talk did not end with a conclusion, nor it stops the tariff hike from 10% to 25%. Beijing will come up with countermeasures, but did not specify the details. What will happen next? Let's look at how currency exchange impact the tariff and import-export companies. The USD has strengthened against RMB in past 5 days, since Trump announced the recent rate hike. However DXY does not show strength. First we look at the impact of US tariff on Chinese imported goods. Chinese goods imported will be levied with higher tax, it increases the cost of goods. Naturally the import company will increase the price of the goods. US consumers compare prices and may choose to buy similar goods from other countries or they can choose US goods. It brings up sales for US/other countries company. However when USD strengthen against RMB, Chinese goods become cheaper then. It brings down the cost and price of Chinese goods. Normally the currenc...
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