USD-W1,430 touch on tariff threat

1) USD-W1,430 touch on tariff threat
The exchange rate between the U.S. dollar and the U.S. won jumped 19 won from the previous trading day to around 1,425 won. The dollar once touched 1,431 won as Trump’s tariff remarks made emerging economies’ currencies weaken. The dollar is sluggish compared to major currencies such as the yen, the euro, and the pound. BBH said concerns over a trade war between the U.S. and China have revived, putting pressure on risky assets, adding that intensifying trade friction is expected to backfire on global growth. Mizuho Bank called Trump’s cancellation of Xi Jinping’s meeting a step backward from a geopolitical perspective, saying, “President Trump is ‘considering’ a significant increase in tariffs, leaving room for Trump.” It pointed out, “We can postpone it if we want.”

2) Trump threatens 100% more tariffs
Referring to China’s recent “hostile” export controls on rare earths, Trump posted that he was scheduled to meet with Xi at the Asia-Pacific Economic Cooperation (APEC) in South Korea in two weeks, but now there seems to be no reason for that. He said he would impose an additional 100% tariff on China, along with export controls, on all key software from Nov. 1. However, he made some softening remarks to appease the market. “Don’t worry about China. Everything will be fine,” Trump said, adding, “The respected President Xi Jinping does not want a recession in his own economy, and neither do I. The United States is trying to help China, not to hurt China.”

3) China says it will retaliate if it does not withdraw its threat to the U.S
China urged the U.S. to stop threatening tariff hikes and resolve trade conflicts through negotiations, but warned that it will not hesitate to retaliate if the Trump administration continues to take actions against China’s interests. China’s Ministry of Commerce said its latest response is defensive and accused the U.S. of introducing new regulatory measures to target China after high-level talks between the U.S. and China in September. China’s Ministry of Commerce said, “If the U.S. insists on the path now, China intends to take corresponding measures to defend its legitimate rights and interests.”

4) China imposes port usage fees on U.S. ships
China imposes new port usage fees on U.S. ships and opens an anti-monopoly investigation into Qualcomm. China’s Ministry of Transport announced that it will collect special port service fees from Friday for U.S. corporate and privately owned ships and ships built in the U.S. This coincides with the date the U.S. planned to impose new charges on large Chinese ships. Also, Chinese regulators open an antitrust investigation into Qualcomm’s acquisition of Israel AutoTox

5) Thousands laid off in U.S. government shutdown
Thousands of federal employees have been laid off due to the prolonged shutdown of the U.S. federal government. White House Budget Director Russell Boat said, “Reduction in Force (RIF) has begun.” At least 4,100 people have been laid off due to the shutdown and additional reductions are expected. Congress is continuing negotiations to resolve the shutdown, but progress has been slow due to sporadic discussions. Leaders of both parties are still in parallel over whether to link the extension of the Obamacare subsidy to the government’s reopening
(자료: Bloomberg News)