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U.S. eyes more China tariffs if Trump-Xi meeting fails

01 November 2018

Bloomberg reported early Monday morning that the U.S.is preparing to announce tariffs on all remaining Chinese imports by early December, which could possibly amount to $257 billion in new levies based on last year's import figures, if Trump and Xi fail to reach an agreement.

He said he has 267 billion dollars of new tariffs waiting to go if he can not make a deal with China.

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

Auto companies rose after Bloomberg News reported that regulators in China intend to propose cutting the tax on imported cars to 5 percent from 10 percent.

At 12 p.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 49.17 points, or 0.34 per cent, at 14,771.08.

Other members of the so-called FAANG group also sold off. Apple shed 1.9 percent while Facebook gave up 2.3 percent.

Stocks have plunged since early October, breaking a long period of relative calm over the summer, and trading has been especially volatile the last few days.

Futures signaled gains for equities in Hong Kong and China, while Japanese stocks were seen opening slightly lower.

The Japanese yen sank 0.4 percent to 112.79 per dollar. Alphabet, Google's parent company, lost 4.5 percent to $1,034.73. The Nasdaq has dropped 13% from its August 29 record high.

The kiwi traded at 65.46 USA cents from 65.27 U.S. cents at 8am and 65.32 cents yesterday.

The chill around China and global trade left emerging- market stocks at an 18-month low, with MSCI's index down for a sixth day in a row.

"And I have $267 billion waiting to go if we can't make a deal", Trump said.

The US President said he would like to strike a deal now but that China was not ready. Asian shares were mostly higher on Tuesday as traders took the weaker yuan as a sign that Chinese exports can remain competitive even if a trade dispute with Washington heats up.

Firm U.S. economic data and a strongly worded statement from a China Politburo meeting chaired by President Xi Jinping signaling increased urgency for more measures to combat the slowing economy helped buoy sentiment toward risk assets.

U.S. eyes more China tariffs if Trump-Xi meeting fails