China’s 10-Year Yield Falls Amid Renewed Tariff Woes

China’s 10-year government bond yield fell to around 1.79% on Friday, as investors weighed renewed tariff tensions. According to reports, the US has urged G7 nations to impose steep tariffs—ranging from 50% to 100%—on China and India in response to their continued purchases of Russian oil. This initiative is part of Washington’s strategy to pressure Moscow into entering peace negotiations over the conflict in Ukraine. In addition, the US is rallying support from non-EU G7 members, including Japan, the UK, and Canada. The US has also recently encouraged the EU to join the effort, though EU officials remain hesitant, citing the risk of retaliation and the ongoing trade talks with India. Separately, China has voiced strong opposition to Mexico’s proposal to impose tariffs of up to 50% on automobiles and other goods imported from countries without free trade agreements—many of which are Chinese. Beijing called the measure discriminatory and said it was influenced by external pressure.