Trump sends markets tumbling with renewed call for additional China tariffs

Trump warned Sunday that he would lift tariffs Friday on a bundle of Chinese goods to 25% from the current 10% threshold, reactivating a threat he removed months ago just as it appears the two economic superpowers are on their way to a deal. He also warned he would tax nearly all of Chinese exports to the United States. Trump appeared to be reviving an old playbook by threatening to ratchet up tariffs on Beijing in the hopes of applying additional pressure on China to force negotiators to strike a deal as early as this week. Earlier this year, Trump said he was prepared to enact new sanctions, and increase existing ones, if a deal wasn’t struck by a hard deadline of March 1, but indefinitely shelved those plans. The President’s renewed tariff threat alarmed investors Sunday, sending stock futures down. The Dow was down more than 400 points Sunday evening, while the Nasdaq was down more than 100 points.

Chinese negotiators led by Vice Premier Liu He are scheduled to arrive in Washington on Wednesday with a very large delegation, the latest signal that two sides may be nearing the end stage of a comprehensive trade deal that will end a trade impasse that has rattled Wall Street. The fresh comments by the President on Twitter came just days after he expressed cautious optimism over the possibility of brokering a possible trade deal with China soon. The White House has set its sights on wrapping up trade talks by the end of the month. “The deal itself is going along pretty well,” Trump told reporters in the Oval Office on Friday. “I would even say very well, we’ll see what happens over the next couple of weeks. We’re getting close to

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