Markets are bracing for more drama when trading resumes Monday, after President Trump slapped 100% tariffs on Chinese imports and called out “sinister and hostile” moves by China to try to corner the market on rare earth minerals.
Trump tore into China’s new export controls Friday, announcing new tariffs “over and above” existing U.S. levies on Chinese goods following Beijing’s “extraordinarily aggressive” move.
That prompted a sharp market drop reminiscent of the reaction when Trump announced his “Liberation Day” tariffs.
The president threatened to scrub his planned meeting with China’s President Xi Jinping, saying there “seems to be no reason” to get together during his upcoming Asia trip.
“I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,” Trump said.
On Friday, Trump appeared to walk back the threat.
“I haven’t cancelled but I don’t know that we’re going to have it. I would assume we might have it,” the president said.
The S&P 500 Index fell 2.7 percent Friday, its largest single-day drop since April. Dow Jones futures markets open Sunday night.
Despite what he called China’s “shocking” decision, Trump left the door wide open for talks.
“That’s why I made it [take effect] November 1. We’ll see what happens,” he said Friday.
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