Published: Fri, November 02, 2018
Markets | By Jeffery Armstrong

USA plans more China tariffs if Trump-Xi meeting fails

USA plans more China tariffs if Trump-Xi meeting fails

MORE CHINESE TARIFFS: On Monday, Bloomberg News reported that the Trump administration plans to announce a new wave of tariffs on Chinese goods in December, if upcoming talks between President Donald Trump and his Chinese counterpart Xi Jinping fail to substantially diffuse tensions.

Trump has already imposed tariffs on $250bn worth of Chinese goods, and China responded with retaliatory duties on $110bn worth of U.S. goods.

Trump also threatened on numerous occasions to put punitive tariffs on the entirety of Chinese imports to the USA if Beijing enacted retaliatory measures in response to Washington's latest round of duties on US$200 billion of Chinese goods.

President Donald Trump said Monday that the US will make a "great deal" with China on trade, while threatening billions of dollars of extra tariffs if a deal isn't done. But Germany's DAX fell 0.2 percent to 11,316 and the CAC 40 in France sank 0.2 percent to 4,980 after weak eurozone growth figures.

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Trump told Fox News on Monday that he wants to make a deal with China, but officials in Beijing say they are not ready.

"I think it's a reflection of the lack of conviction that we have in the market right now", Fehr said in an interview.

MSCI's gauge of stocks across the globe gained 1 percent. The Russell 2000 index of smaller-company stocks dropped 0.4 percent to 1,447.31.

Panic cooled somewhat in the last 15 minutes of trading as the Dow pared losses to end the day down 245.39 points, or 1 percent, at 24,442.92 while the S&P 500 shed 0.7 percent.

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Although most tech firms fell Monday, open-source software company Red Hat soared 45.4% to $169.63 - reversing its losses from earlier this year - after IBM agreed to buy it for $34 billion in stock.

"We talked about a prospective trade war". The effects could be especially severe for technology companies, which make many of their products in China, and for industrials. The cause of the conflict was the desire of Donald trump to reduce the USA negative trade balance with China. Both were up over 7 percent for the year at the start of October. The euro fell to $1.1354 from $1.1372.

The pan-European STOXX 600 index lost 0.14 per cent. Stocks climbed earlier this month after Bolsonaro led the previous round of voting, as investors preferred him to leftist parties.Bond prices dipped.

Brent crude futures fell $1.34 to $76.00 a barrel, a 1.7-per-cent drop. The dollar strengthened on better-than-expected private payrolls data, lifting the 10-year Treasury yield to 3.14 percent. Brent crude, used to price worldwide oils, fell 0.4% to $77.34 a barrel in London.

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The dollar rose to 112.35 yen from 111.85 yen.

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