The U.S.is preparing to announce by early December tariffs on all remaining Chinese imports if talks next month between presidents Donald Trump and Xi Jinping fail to ease the trade war, three people familiar with the matter said. But she said the group, representing United States companies doing business in China, was urging both sides to better use the time before the Trump-Xi meeting to figure out how progress can be made on substantive issues.
“I have US$267 billion waiting to go if we can’t make a deal”, Trump said in the interview, referring to his plan to extend tariffs to all Chinese imports.
Stocks erased gains partly on concern about an escalating trade war between the world’s two largest economies.
Risk appetite got a lift after Trump’s commented that he may be more ready than China to do a deal.
“The futures are pointing to a bounce at the opening after yesterday’s swings, suggesting another similar session is in the making”, Peter Cardillo, chief market economist at Spartan Capital Securities LLC in NY, said in a client note. The S&P 500 Index fell as much as 2.1% before paring the drop and ending the day down 0.7%.
The kiwi traded at 65.46 USA cents from 65.27 U.S. cents at 8am and 65.32 cents yesterday.
Xi will attend an “import expo” in Shanghai next week, an event created to showcase Beijing’s willingness to buy more from the rest of the world and to cut its trade surplus.
Shanghai rebounded from early losses to end up 1%, with traders also welcoming a decision by authorities that will make it easier for firms to undertake share buybacks, giving them more scope to prevent sharp falls.
The Chinese currency’s exchange rate against the dollar has also weakened to the lowest level in a decade and is about to break the key psychological level of 7 yuan to the U.S. dollar. Ten-percent tariffs on $200 billion in imports that took effect in September are due to increase to 25% on January 1.
According to a Bloomberg report citing anonymous sources, no decisions have been made, but a new list of USA tariffs was being prepared in case the Trump-Xi meeting does not yield progress.