United States (US) President Donald Trump told Fox Business Network on Friday that a 100% tariff would not be sustainable and added that they have to have a fair deal with China.
U.S.-China trade tensions are again front and center following the developments of late last week. China's plan to impose strict export controls, especially on rare earth minerals, were matched by new tariff threats from President Trump.
US President Donald Trump lashed out at China over its recent protectionist trade policies, threatening additional targeted trade restrictions if China goes ahead with imposing fresh rare earth mineral export controls and additional port fees for foreign container ships in Chinese ports.
In an interview with Fox Business on Monday, United States (US) Treasury Secretary Scott Bessent noted that they have aggressively pushed back against China's export controls and called in a "provocative move," per Reuters.
China Foreign Ministry spokesperson Lin Jian said during a regular press briefing this Monday that if the US is determined to go its own way, China will resolutely take corresponding measures to safeguard its legitimate rights and interests.
On Friday, Trump threatened China with 100% tariffs on top of the existing rates as a retaliation against China’s new export control measures on rare earth minerals. However, comments received over the weekend appear to downplay the risk of trade war escalation.
EUR/USD is trimming part of its earlier gains, coming under some mild downside pressure near 1.1730 as the US Dollar edges higher. Markets are still digesting the Fed’s latest rate decision, while also looking ahead to more commentary from Fed officials in the sessions ahead.
Disappointing UK data weighed on the Sterling towards the end of the week, triggering a pullback in GBP/USD to fresh daily lows near 1.3360. Looking ahead, the next key event across the Channel is the BoE meeting on December 18.
The S&P 500 continued to push higher yesterday as the US 2-year yield wavered around the 3.50% mark following a Federal Reserve (Fed) rate cut earlier this week that was ultimately perceived as not that hawkish after all. The cut is especially boosting the non-tech pockets of the market.
Gold now gives away some gains and disputes the key $4,300 zone per troy ounce following earlier multi-week highs. The move is being driven by expectations that the Fed will deliver further rate cuts next year, with the yellow metal climbing despite a firmer Greenback and rising US Treasury yields across the board.
Litecoin (LTC) price steadies above $80 at press time on Friday, following a reversal from the $87 resistance level on Wednesday. Derivatives data suggests a bullish positional buildup while the LTC futures Open Interest declines, flashing a long squeeze risk.
