US and China clash over fentanyl and tariffs at global drugs meeting, via Reuters; The Trump administration has told ​Beijing it expects to ​reimpose that levy ⁠under a different law

• "The United States and China traded barbs at a U.N. drugs meeting on Monday, with Washington accusing Beijing of failing to stop sales of precursor ​chemicals for fentanyl and China dismissing the allegation as false while calling ‌the U.S. irresponsible."
• The U.S. Supreme Court last month invalidated a 10% fentanyl-related tariff Trump had imposed on China and others under an emergency statute. The Trump administration has told ​Beijing it expects to ​reimpose that levy ⁠under a different law, a U.S. official said.

The ongoing U.S.-China tensions regarding fentanyl and tariffs signal a potential escalation in trade conflicts, particularly as the Trump administration seeks to reinstate tariffs under a different legal framework. This could heighten volatility in financial markets, impacting asset classes like equities and commodities, and may further strain USD and CNY exchange rates. Traders should watch for market reactions in risk-sensitive assets, particularly in light of any retaliatory measures from China.