August 2, 2019 / 2:00 AM / 4 months ago

China yuan, stocks slump as Trump breaks trade truce

HONG KONG, Aug 2 (Reuters) - Chinese markets opened sharply lower on Friday after U.S. President Donald Trump announced a new round of tariffs on China, blaming slow progress in their bilateral trade talks.

Trump on Thursday said he would slap a 10% tariff on the remaining $300 billion of Chinese imports from next month, breaking the hiatus in tit-for-tat tariffs since his meeting with Chinese President Xi Jinping at the G20 summit in June.

The Chinese yuan slid to its weakest since November 2018, softening by over 0.7% to 6.95 per dollar in onshore trade and fell to 6.9756 in the offshore market.

The Shanghai Composite Index was down 1.6% at 2,857.17 points in early trade, while the blue-chip CSI300 and Hong Kong’s Hang Seng Index both dropped over 2%.

Earlier this week, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin had their first face-to-face meeting with Chinese officials since the June trade war ceasefire.

Reporting by Noah Sin; Editing by Michael Perry

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