The US is preparing to announce by early December tariffs on all remaining Chinese imports if talks between Trump and Xi fail, according to three people cited by Bloomberg. The reports - all based on a Bloomberg article - say that the U.S. will place tariffs on the remaining $257 billion of Chinese imports not already subject to tariffs if there are no new developments in the ongoing trade spat.
He has long threatened to impose tariffs on all remaining Chinese imports into the United States if Beijing fails to meet his demands for sweeping changes to trade, technology transfer and industrial subsidy policies.
At 12 p.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 49.17 points, or 0.34 per cent, at 14,771.08. The S&P 500 index has dropped 9.4 percent in October and is on track for its worst monthly loss since February 2009.
With the initial market reaction, Wall Street came under a heavy selling pressure and Nasdaq was last seen down 1.26% on the day while the DJIA and the S&P 500 indexes were losing 0.25% 0.05%, respectively.
A senior Chinese diplomatic source said on Tuesday that the two presidents had "agreed to meet" on the sidelines of the G20 in Buenos Aires, but would not offer details on the agenda of those discussions.
Canada's main stock index reversed course to trade higher on Tuesday, led by gains in industrial stocks. Its stock traded above $2,000 a share in early September and has fallen 24.5 percent since then. The U.S. and China are the world's largest economies and their trade relationship is the world's largest, so the higher taxes on imports could also slow global economic growth and increase inflation.
His remarks came a day after Chinese Assistant Foreign Minister Zhang Hanhui underscored that Beijing is not ready to minimize its trade with the U.S. despite the ongoing trade conflict between the two countries.
Speizer said markets will now be focused on Australia's third-quarter inflation data due tomorrow, followed by U.S. non-farm payrolls data at the end of the week.
The effects of higher tariffs could be especially severe for tech firms, which make many of their products in China, and for industrial companies, which are already paying higher prices for metals. They've been taken out an average of USD500 billion a year for many years.