Yen firms, Yuan Falls after Donald Trump Escalates Tariff War

The safe heaven Japanese yen climbed and the Yuan declined after US president Donald Trump threatened to raise tariffs on China. The Beijing was reported to be considering cancelation of talks planned for this week sending riskier assets into a spin.

The US president on Sunday increased pressure on China to reach a trade deal by announcing he would pull up US tariffs on $200 billion worth of Chinese goods this week and target hundreds of billions more soon.

The announcement embarrassed many as the Twitter announcement marked a major shift in tone from Trump, who has cited good progress in trade talks and praised his relationship with Chinese president Xi Jinping.