# Chinas Trade Retaliation Has USDCNH Bulls Eyeing DecadePlus Highs Near 700

> China said it would raise tariffs on $60 billion of US imports to as high as 25% from June 1, in response to US tariff threats on a further $325 billion of Chinese goods. State media suggested China could halt purchases of US agricultural products and energy, and the offshore yuan neared a decade low against the dollar.

- Date: 2019-05-13 · published 2019-05-13T12:00:00.000Z
- Category: trade · region China · magnitude high
- Page: https://feedsoft.ai/events/8443-chinas-trade-retaliation-has-usdcnh-bulls-eyeing-decadeplus-highs-near-700
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Sorghum](https://feedsoft.ai/c/SORGHUM.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A possible halt in Chinese purchases of US farm products would remove a major export outlet for soybeans and corn, and the weaker yuan further discourages imports, pointing to lower US feed grain and soybean prices.

## Read by commodity

- SBM: bearish ▼
- SOY: bearish ▼
- CORN: bearish ▼
- USDBRL: neutral
- USDCNY: bullish ▲
- SORGHUM: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2019-05-13 | 1 | +0.8% | 3.9 | China's tariff retaliation and state media hints at halting US agricultural and energy purchases pushed USDCNH toward decade highs on the same day, driving risk-off yuan selling. |
| SBM | 2019-05-13 | 1 | +3.5% | 4.2 | China's tariff retaliation on $60B of US goods and hints at halting US ag purchases hit soy complex demand expectations on 2019-05-13, a direct trade-flow and sentiment driver. |
| SBM | 2019-05-15 | 5 | +6.3% | 3.2 | China's May 13 tariff retaliation and talk of halting US farm purchases escalated the trade war, hitting soy complex sentiment and demand expectations. |
| SOY | 2019-05-13 | 1 | +3.4% | 5.0 | China's tariff retaliation and talk of halting US farm purchases drove trade-war sentiment and soybean volatility around May 13. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2021-07-29 | [U.S. Trade Tariffs on China Near $100 Billion](https://feedsoft.ai/events/45924-u-s-trade-tariffs-on-china-near-100-billion.md) | -2.0% | -6.0% |
| SOY | 2025-04-04 | [China retaliation on US farm goods hits soybeans, bolstering Brazil](https://feedsoft.ai/events/6029-china-retaliation-on-us-farm-goods-hits-soybeans-bolstering-brazil.md) | +1.7% | +3.7% |
| SOY | 2025-04-04 | [US dollar recovers, Aussie hits five-year low after China tariff retaliation](https://feedsoft.ai/events/25332-us-dollar-recovers-aussie-hits-five-year-low-after-china-tariff-retaliation.md) | +1.7% | +3.7% |
| SOY | 2019-07-11 | [US - China trade war hitting Panama Canal revenues](https://feedsoft.ai/events/57984-us-china-trade-war-hitting-panama-canal-revenues.md) | -1.2% | -5.0% |
| SOY | 2018-06-16 | [China hits U.S. agriculture with retaliation](https://feedsoft.ai/events/64580-china-hits-u-s-agriculture-with-retaliation.md) | -1.2% | -8.4% |
| CORN | 2025-03-04 | [Mexico vows retaliation as Trump trade war erupts](https://feedsoft.ai/events/25800-mexico-vows-retaliation-as-trump-trade-war-erupts.md) | +3.2% | +4.7% |
| CORN | 2018-06-16 | [China hits U.S. agriculture with retaliation](https://feedsoft.ai/events/64580-china-hits-u-s-agriculture-with-retaliation.md) | -0.9% | -3.9% |
| CORN | 2025-07-18 | [Tariff Retaliation, USDA Farm Security Plan Needs More Resources — Plus More From D.C.](https://feedsoft.ai/events/23748-tariff-retaliation-usda-farm-security-plan-needs-more-resources-plus-more-from.md) | -0.0% | -2.5% |

## Sources

- dailycallernewsfoundation.org: https://dailycallernewsfoundation.org/2019/05/30/china-halts-purchases-of-american-soybeans/
- forex.com: https://www.forex.com/en/news-and-analysis/chinas-trade-retaliation-has-usdcnh-bulls-eyeing-decadeplus-highs-near-700/
- forex.com: https://www.forex.com/en-us/news-and-analysis/chinas-trade-retaliation-has-usdcnh-bulls-eyeing-decadeplus-highs-near-700/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.