The offshore yuan edged higher to around 7.14 per dollar on Monday, recovering some of its prior losses, as investors weighed US President Trump’s tempered remarks that softened Friday’s tariff announcements on Chinese goods. In a follow-up post and comments to reporters, Trump said trade relations with China “will all be fine,” hinting at openness to talks and a potential meeting with President Xi. His remarks partially eased concerns triggered by his earlier pledge to impose 100% tariffs and software restrictions starting November 1. China, however, struck a defiant tone, saying it was “not afraid” of a trade war after Trump’s tariff threat. Analysts suggested Beijing’s recent policy signals may reflect an effort to strengthen its negotiating stance ahead of further discussions. Meanwhile, even as a trade deal with the US remains elusive, September trade data showed China’s exports grew at their fastest pace in six months, while imports posted their largest increase in over a year.
