United States (US) President Donald Trump told Fox Business Network on Friday that a 100% tariff would not be sustainable and added that they have to have a fair deal with China.
U.S.-China trade tensions are again front and center following the developments of late last week. China's plan to impose strict export controls, especially on rare earth minerals, were matched by new tariff threats from President Trump.
US President Donald Trump lashed out at China over its recent protectionist trade policies, threatening additional targeted trade restrictions if China goes ahead with imposing fresh rare earth mineral export controls and additional port fees for foreign container ships in Chinese ports.
In an interview with Fox Business on Monday, United States (US) Treasury Secretary Scott Bessent noted that they have aggressively pushed back against China's export controls and called in a "provocative move," per Reuters.
China Foreign Ministry spokesperson Lin Jian said during a regular press briefing this Monday that if the US is determined to go its own way, China will resolutely take corresponding measures to safeguard its legitimate rights and interests.
On Friday, Trump threatened China with 100% tariffs on top of the existing rates as a retaliation against China’s new export control measures on rare earth minerals. However, comments received over the weekend appear to downplay the risk of trade war escalation.
AUD/USD holds above 0.6600 in Friday’s Asian session, remaining close to yesterday's two-month high. Divergent RBA-Fed policy expectations support spot prices amid a broadly weaker US Dollar. However, bulls are pausing ahead of today’s key US PCE Price Index. Still, spot prices remain on track to register strong gains for the second consecutive week.
USD/JPY remains weak near 155.00 in the Asian session on Friday. The pair faces headwinds from expectations of the Fed-BoJ monetary policy divergence, which outweighs the fall in Japanese Household Spending in October. All eyes are on the delayed US Personal Consumption Expenditures Price Index data for September later on Friday.
The Fed has gone through a noticeable policy swing in recent months - from initiating a rate cut, to signaling a potential pause, and now shifting once again toward another cut in December. This has created understandable confusion among traders and investors trying to interpret the Fed’s reaction function.
Gold price (XAU/USD) trades on a flat note near $4,205 during the early Asian trading hours on Friday. Rising US Treasury yields and upbeat US jobs data cap upside for the precious metal. Traders might prefer to wait on the sidelines ahead of the key US inflation data. The US delayed the Personal Consumption Expenditures Price Index report for September, which will be published later on Friday.
Ripple (XRP) is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.
