"Investors are increasingly anxious an anticipated second-half profit rebound may now evaporate as President (Donald) Trump's threat to tariff the remaining $325 billion in Chinese imports would disproportionately target consumer products like iPhones, thereby posing a greater threat to the consumption-driven United States economy", said Alec Young, managing director of global markets research at FTSE Russell.
"Since we see a trade accord being reached in the not-too-distant future, we don't expect the market to endure more than a short-lived spate of indigestion", said Sam Stovall, chief investment strategist at CFRA. Cellphones and laptops would be included in that list, but pharmaceuticals would be excluded, the office said. The tit-for-tat rattled global equity markets. China's yuan currency fell to its lowest level since December and oil futures slumped. "And that'll be, I think, probably a very fruitful meeting", Trump said of XI during a White House appearance with Hungarian Prime Minister Viktor Orban.
Friday night on the radio, LevinTV host Mark Levin explained why it's good that the Trump administration is taking such a hard-line stance against China in recent trade talks. "And until we do we have to keep our tariffs on", Kudlow said. -China trade deal could happen soon and are bracing their portfolios for a more prolonged battle that could hamper global growth. He says the President's willingness to ramp up the fight is "100 per cent domestic politics".
The U.S.is set to release a plan to levy a 25 pr cent additional tariff on all remaining imports from China on Monday.
It said the tariffs will take effect on June 1.
An escalation in recent days in the long-running trade dispute between the world's two biggest economies has stoked fears of a global economic slowdown, causing a sell-off in stocks led by trade-sensitive names and a move into low-risk assets like U.S. Treasuries and gold.
A 25% tariff applies to 2,493 items including industrial chemicals, electronic equipment, precision machinery and hundreds of food products, according to the Finance Ministry.
Sources have said talks stalled after China tried to delete commitments from a draft agreement that its laws would be changed to enact new policies on issues from intellectual property protection to forced technology transfers.
Chinese foreign ministry spokesman Geng Shuang told a news briefing in Beijing that China would "never surrender to external pressure".
"China's adjustment on additional tariffs is a response to USA unilateralism and protectionism", its finance ministry said.
Iowa Senator Joni Ernst and Kansas Senator Pat Roberts, both Republicans, said that farmers are tiring of the duress caused by tariffs but expressed hope for a deal that would benefit the country.
Trump has repeatedly said that China will pay the tariffs that increased May 10 to 25 percent from 10 percent on $200 billion in Chinese goods.
Analysts have warned that failed trade talks and the deterioration in relations will put a dent in the US and China's economic prospects.
Kudlow said the US tariffs would remain in place while negotiations continue.