# U.S.-China trade war - the levers they can pull

> Reuters outlines levers available in the US-China trade war, noting a selloff would raise US interest rates and borrowing costs. The Fed could cut rates or buy debt to counter the move.

- Date: 2019-06-19 · published 2019-06-19T12:00:00.000Z
- Category: trade · region US · magnitude low
- Page: https://feedsoft.ai/events/9813-u-s-china-trade-war-the-levers-they-can-pull
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Policy responses to trade-driven market stress could shift dollar and rate expectations that affect commodity prices, but the piece is a general analysis without a concrete new measure.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-04-04 | [China, holding Treasuries, keeps 'nuclear option' in U.S. trade war](https://feedsoft.ai/events/65715-china-holding-treasuries-keeps-nuclear-option-in-u-s-trade-war.md) | -0.1% | +0.7% |
| USDCNY | 2018-12-03 | [US-China trade war truce dings dollar; Aussie, yuan advance](https://feedsoft.ai/events/6921-us-china-trade-war-truce-dings-dollar-aussie-yuan-advance.md) | -0.7% | -1.2% |
| USDCNY | 2018-06-29 | [Trade Dispute Hits China’s Yuan, Investors](https://feedsoft.ai/events/8536-trade-dispute-hits-china-s-yuan-investors.md) | +0.2% | +2.8% |
| USDCNY | 2019-08-05 | [China lets yuan break key 7 level for first time in decade as trade war worsens](https://feedsoft.ai/events/5368-china-lets-yuan-break-key-7-level-for-first-time-in-decade-as-trade-war-worsens.md) | +1.8% | +3.1% |
| USDCNY | 2019-08-06 | [U.S.-China Trade War Spreads From Tariffs To A Battle Over Currencies : NPR](https://feedsoft.ai/events/5374-u-s-china-trade-war-spreads-from-tariffs-to-a-battle-over-currencies-npr.md) | +0.1% | +1.9% |

## Sources

- reuters.com: https://www.reuters.com/article/us-usa-trade-china-levers-explainer/explainer-u-s-china-trade-war-the-levers-they-can-pull-idUSKCN1T62KY/

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