US and European stocks dropped on Tuesday as traders reacted to the latest escalation in the US-China trade war and the two sides’ failure to schedule talks to resolve the dispute.
The Trump administration slapped tariffs on $112 billion in Chinese goods on Sunday, and plans to impose duties on another $160 billion worth of Chinese products in mid-December. China retaliated with the first of two batches of duties targeting $75 billion worth of US goods.
The two governments are struggling to schedule trade talks expected to take place this month, according to Bloomberg. Two of the sticking points are the parameters for the next round of negotiations, and the US ignoring China’s request to delay tariffs over the weekend, Bloomberg said.
“The investor mood was spoiled by the US and Chinese officials’ inability to fix a date for the next face-to-face meeting that is supposed to take place in September,” Ipek Ozkardeskaya, senior market analyst at London Capital Group, said in a morning note. “There is a rising fear that the meeting will be postponed or cancelled following the latest escalation of tensions.”
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