The US 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 US-China trade war, three people familiar with the matter said.
A new list of tariffs would be drawn up on the remaining $257 billion of goods not yet facing tariffs and after a 60-day public comment period, they would go into effect around the Chinese lunar new year holidays in early February.
This was the nail in the coffin for today's equity bounce.
The Dow Jones slid 1% to 24,442.9, while the S&P 500 fell about 0.7% to 7,050.29.
Full story at Bloomberg.
Hong Kong's Hang Seng Index was 0.1% lower at 11:04 a.m. local time Tuesday, while the Shanghai Composite Index gained 0.9%.
"I can make a deal right now (with China)".
Bloomberg Economics estimates that the drag on 2019 GDP growth could be about 1.5 percentage points assuming a tariff rate of 25% on all Chinese imports.
Atlantic Hurricane Oscar moving westward: NHC
Hurricane winds extend only 15 miles from the center, while tropical storm force winds extend outward up to 115 miles. AST (1500 UTC), the center of Subtropical Storm Oscar was located near latitude 27.3 north, longitude 48.4 west.
White House Press Secretary Sarah Huckabee Sanders declined to give specifics when asked about the importance of the meeting. "I just say they (the Chinse) are not ready", he said.
The losses accelerated following a report by Bloomberg that the U.S. is preparing tariffs on additional Chinese goods, pending a potential meeting between leaders of the two countries.
He said China had been really hurting the U.S. economically.
The kiwi has been battered by the US-China trade tensions as China is New Zealand's largest trading partner.
"We are in the middle of a pretty nasty dispute".
As another option, the White House is also considering excluding trade from the meeting agenda but it is unlikely to cancel it altogether, according to two people familiar with the matter. "You know why? 'Cause we always win".