FTSE latest: London share prices PLUMMET amid US-China trade war fears

FTSE latest: London share prices PLUMMET amid US-China trade war fears

China expressed confidence on Wednesday that it can reach a trade deal with the United States, a sentiment echoed by U.S. President Donald Trump a day after he warned of more tariffs if the two sides could not resolve their differences.

In a brief statement, the ministry said China would try to work quickly to implement specific items already agreed upon, as both sides "actively promote the work of negotiations within 90 days in accordance with a clear timetable and road map". "Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina", Mr Trump said on Twitter.

During the meeting on Saturday, Xi and Trump agreed to suspend any new tariffs and take steps to address the trade disputes, which over the past few months had threatened to spill over into a trade war between the world's two largest economies.

Washington and Beijing said they will try to achieve a permanent deal within the next 90 days, however the US still has significant leverage, stating that if a formal deal can't be reached then it will hike tariffs from 10 percent to 25 percent, which could roil global stock markets, stagnate global economic growth, dampen oil demand growth and possibly lead to a recession across the globe, particularly in emerging economies.

Trump, however, has threatened to slap tariffs on auto imports from Europe and other countries, citing USA trade deficits with those nations. We make the finest and cleanest product in the World, and that is what China wants.

President Trump doubled-down on his widespread use of trade tariffs to improve the U.S. economy and the American manufacturing base Tuesday, saying he is a "tariff man" after reaching a 90-day "truce" with China.

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Investors had initially welcomed the truce that the administration said was reached over the weekend in Argentina between Presidents Donald Trump and Xi Jinping - and sent stocks up Monday. "Not to sound naive or anything, but I believe President Xi meant every word of what he said at our long and hopefully historic meeting". We are right now taking in $billions in Tariffs.

The United States also expects China to promptly address structural issues, including intellectual property theft and forced technology transfers. Trump is relying on tariffs, and the threat of imposing them, to force other countries to buy more goods from America.

"He and I are the only two people that can bring about massive and very positive change, on trade and far beyond, between our two great Nations".

US stocks got a big lift Monday after the G20 meeting over the weekend cleared up some major uncertainties for investors. Should China remove the tariffs now, US soybean would likely still be uncompetitive in the global market as harvest season approaches for the crop in South America.

"The actual amount of concrete progress made at this meeting appears to have been quite limited", Alec Phillips and other economists at Goldman Sachs wrote in a research note.

The U.S. embassy in Beijing posted a Chinese version of the White House's readout of the meeting on the popular WeChat platform on social media, but reposting it was not possible. Trump named U.S. Trade Representative Robert Lighthizer to lead the talks with Beijing.

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