Rolling coverage of the latest economic and financial news, as US proposes steep new tariffs on French cheese, wine, handbags and porcelain
- Latest: Trump says China deal could wait until after 2020 election
- Trump says France shouldn’t tax US companies
- Trump: If anyone takes advantage of US firms, it’s us!
- Introduction: Trade war deepens
- French fizz, cheese, handbags all face 100% tariff
- France: We’ll hit back
Today’s burst of trade war drama has been a wake-up call for investors who had hoped that the dispute was being ended peacefully.
Michael Hewson of CMC Markets explains:
It’s been another choppy day for markets in Europe after an initially positive start. Once again it’s been an intervention by President Trump that’s upset the applecart, when in an impromptu question and answer session with journalists he held open the prospect that there would be no US, China trade deal, until after the US elections next year.
This insouciance about the prospect of putting off any deal has completely upended market expectations that we were potentially millimetres away from a deal, and also flies in the face of the optimism that has seen markets rally strongly over the last few weeks.
CNBC’s Michelle Caruso-Cabrera is losing faith that China and the US will ever reach a trade deal….
“I’m getting more convinced that maybe you never have a deal, even after the election,” says Michelle Caruso-Cabrera after President Trump’s comments sent futures lower this morning. pic.twitter.com/huTaaHrCWd