Chinese shares hit by Trump tariff threat

Chinese stock markets tumbled on Monday after US President Donald Trump threatened new tariffs on China, putting a trade deal in doubt.

He said on Twitter the US would more than double tariffs on $200bn (£152bn) of Chinese goods on Friday and would introduce fresh tariffs.

Recent comments had suggested both sides were nearing a trade deal.

A Chinese delegation was due to travel to Washington this week for talks aimed at ending the trade war.

US media has reported that China is now considering cancelling those talks, that were scheduled to resume on Wednesday.

Some reports said the Chinese were due to send a 100-person delegation to the negotiations, led by Vice-Premier Liu He.

The Chinese government has yet to officially comment on Mr Trump’s tweets.

In China, Hong Kong’s Hang Seng index dropped 3.7%, while the Shanghai Composite plunged 5.3%.

US stock futures pointed to a lower open on Wall Street.

Michael Hirson, Asia director at Eurasia Group, said: “His [Mr Trump’s] move injects major uncertainty into negotiations, which now face a rising risk of an extended impasse – perhaps even through the US presidential election.”

What did Mr Trump say?

The US president tweeted that tariffs of 10% on certain goods would rise to 25% on Friday, and $325bn of…

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