The dollar rose against a basket of major currencies overseas, with investors cautiously awaiting news on the implementation of US tariffs on an additional USD 200 billion of Chinese imports.
The Washington Post and Wall Street Journal said US President Trump had decided to impose 10 percent levies on USD 200 billion of Chinese imports and could make an announcement in the coming days.
The fresh tariffs are aimed at putting pressure on Beijing ahead of tough negotiations on its demand for technology transfer from US companies.
Chinese factories making everything from bikes to tyres, plastics and textiles are moving assembly lines abroad to skirt higher customs taxes on their exports to the United States and elsewhere.
The company's US-made hardware products have taken it to become a USD 1 trillion company but those products are built in China which, in turn, creates thousands of jobs.
Some Chinese exporters say U.S. orders have declined, but Chinese leaders express confidence the economic impact will be modest.
US to impose 10 per cent tariffs on another USD 200 billion of Chinese imports; Beijing vows 'counter measures'
The move comes after China retaliated against the US by imposing tariffs on USD 34 billion in US exports to China.
As reported earlier, the US has imposed 25 per cent duties on about $34 billion worth of Chinese products including industrial machinery, medical devices and auto parts.
United States said on Tuesday that it still held the threat of imposing tariffs on USD50 billion of imports from China and would use it unless Beijing addressed the issue of theft of US IPR.
The White House tempered Donald Trump's praise of Chinese leader Xi Jinping's trade comments, saying concrete action was needed before Washington would consider scrapping tariffs against Beijing.
US President Donald Trump decided in March to impose steep tariffs on steel and aluminum imports, primarily to target China.
China's foreign minister called on the international community to oppose the United States' recent trade moves, saying they threatened global economic growth.
China warned the United States on Wednesday that it will announce retaliatory measures "in the coming days" after US published a list of $50 billion in Chinese products that will face US tariffs.
The move came a day after Beijing imposed duties on about $3 billion in US exports such as pork, wine and fruit, a countermeasure to US metal tariffs.
China imposed tariffs on 128 US imports worth USD 3 billion, including meat, fruit and pork, as retaliation against taxes approved by US President Trump on imported steel and aluminium.
Trump said on Thursday that he would impose 25 per cent of tariff on steel imports and 10 per cent for aluminium to protect the US industry.