United States preparing new round of tariffs if talks with China fail

United States preparing new round of tariffs if talks with China fail

Stocks took a tumble Monday with the Dow Jones Industrial Averageexperiencing a dramatic swing to close down almost 250 points amid concerns of another wave of Chines tariffs.

Trump also said he believed "a great deal" on trade can be agreed with China, but warned about new tariffs if the deal is not struck. The Shanghai Composite index rebounded 1 percent to 2,568.05 and South Korea's Kospi picked up 0.9 percent to 2,014.69.

Stocks have plunged since early October and trading has been especially volatile the last few days.

Stocks erased gains partly on concern about an escalating trade war between the world's two largest economies. Microsoft shed 2.9 percent to $103.85. Alphabet, Google's parent company, sank 4.5% to $1,034.73.

Marijuana producers pushed health care stocks higher by 1.4 per cent. Aphria Inc. rose 6.3 per cent, while Aurora Cannabis Inc. and Canopy Growth Corp. increased 2 per cent and 1.5 per cent, respectively.

U.S. stocks edged higher in the first hour of trading on Tuesday. The Nasdaq has dropped 13% from its August 29 record high.

Trump has already imposed tariffs on $250bn worth of Chinese goods, and China responded with retaliatory duties on $110bn worth of United States goods. But in recent weeks they have lost some of their confidence.

China saw its currency reach its lowest point in a decade on Tuesday while the threat of new tariffs remains.

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.

Trump said in the interview he would like to make a deal now, but that China was not ready. IBM fell 4.1% to $119.64. "A trade war with China was one of the bigger overhangs". Vehicle 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. China hiked tariffs on $110 billion in imports from the U.S.

Ford climbed 3.3% to $9.28.

The Bloomberg report sent stocks lower on Monday afternoon.

The euro was flat at $1.1392. Miners and energy companies led the way as nearly every sector on the Stoxx Europe 600 Index climbed. "You have two of the most powerful leaders in the world".

USA crude fell 1.28 percent to $66.18 per barrel and Brent was last at $76.07, down 1.64 percent.

USA crude fell 1.06 percent to $66.33 per barrel and Brent was last at $76.30, down 1.34 percent.

The heavyweight financial sector rose 0.4 per cent.

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