# A weakening yuan tests Beijing's resolve as Trump tariff threats loom

> The offshore yuan has lost more than 3% since Donald Trump's November election victory, and the onshore yuan has slipped to near a 16-month low. Market watchers expect further depreciation against a stronger dollar, with the pace depending on Beijing's willingness to limit volatility.

- Date: 2025-01-20 · published 2025-01-20T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/9595-a-weakening-yuan-tests-beijing-s-resolve-as-trump-tariff-threats-loom
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

A weaker yuan makes Chinese exports cheaper and may reduce Chinese demand for dollar-priced feed inputs, while also signaling fears of a trade war that could dampen Chinese import demand for US soybeans and corn.

## Read by commodity

- SOY: bearish ▼
- CORN: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-11-12 | [China’s yuan weakens to 3-1/2-month low as Trump tariff threat weighs - Markets - Business Recorder](https://feedsoft.ai/events/6701-china-s-yuan-weakens-to-3-1-2-month-low-as-trump-tariff-threat-weighs-markets.md) | +0.8% | +1.0% |
| USDCNY | 2024-11-12 | [Global investment banks rush to trim yuan forecasts under looming Trump tariff threats](https://feedsoft.ai/events/6700-global-investment-banks-rush-to-trim-yuan-forecasts-under-looming-trump-tariff.md) | +0.8% | +1.0% |
| USDCNY | 2024-12-03 | [China’s yuan hits lowest level in months as Trump tariff threats roil currencies \| South China Morning Post](https://feedsoft.ai/events/27171-china-s-yuan-hits-lowest-level-in-months-as-trump-tariff-threats-roil.md) | -0.2% | +0.4% |
| USDCNY | 2024-12-11 | [EXCLUSIVE: Chinese authorities are considering a weaker yuan as Trump trade risks loom \| Reuters](https://feedsoft.ai/events/27164-exclusive-chinese-authorities-are-considering-a-weaker-yuan-as-trump-trade.md) | +0.5% | +1.1% |
| USDCNY | 2024-11-28 | [Chinese yuan to hit record lows as U.S. tariff threat mounts, investment banks forecast](https://feedsoft.ai/events/27630-chinese-yuan-to-hit-record-lows-as-u-s-tariff-threat-mounts-investment-banks.md) | +0.1% | +0.7% |
| SOY | 2024-11-12 | [China’s yuan weakens to 3-1/2-month low as Trump tariff threat weighs - Markets - Business Recorder](https://feedsoft.ai/events/6701-china-s-yuan-weakens-to-3-1-2-month-low-as-trump-tariff-threat-weighs-markets.md) | -0.2% | -1.7% |
| SOY | 2024-11-12 | [Global investment banks rush to trim yuan forecasts under looming Trump tariff threats](https://feedsoft.ai/events/6700-global-investment-banks-rush-to-trim-yuan-forecasts-under-looming-trump-tariff.md) | -0.2% | -1.7% |
| SOY | 2024-12-03 | [China’s yuan hits lowest level in months as Trump tariff threats roil currencies \| South China Morning Post](https://feedsoft.ai/events/27171-china-s-yuan-hits-lowest-level-in-months-as-trump-tariff-threats-roil.md) | +0.5% | +1.3% |

## Sources

- cnbc.com: https://www.cnbc.com/2025/01/20/yuan-weakness-tests-china-resolve-as-trump-tariffs-loom.html

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