Breaking: Trump to respond to China’s tariffs this afternoon, USD/JPY slumps below 106

Responding to China's announcement of tariffs on $75 billion worth of American imports as retaliation, US President Trump said they don't need China and added that the US would be better off without China. "I will be responding to China’s Tariffs this afternoon. This is a great opportunity for the United States," Trump tweeted out.

With the initial market reaction, the US Dollar Index dropped below the 98 mark and the 10-year US Treasury bond yield extended its losses. While the 10-year yield is erasing nearly 3%, the risk-off mood weighs on the USD/JPY pair as well, which was last down 0.65% on the day at 105.73. Below is President Trump's Twitter threa.

"Our country has lost, stupidly, trillions of dollars with China over many years. They have stolen our Intellectual Property at a rate of hundreds of billions of dollars a year, & they want to continue. I won’t let that happen! We don’t need China and, frankly, would be far better off without them.

The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must stop. Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies home and making your products in the USA.

I will be responding to China’s Tariffs this afternoon. This is a great opportunity for the United States. Also, I am ordering all carriers, including Fed Ex, Amazon, UPS and the Post Office, to search for & refuse all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year. President Xi said this would stop - it didn’t. Our economy, because of our gains in the last 2 1/2 years, is much larger than that of China. We will keep it that way!"