US president Donald Trump has rattled markets with his latest threat to ratchet up tariffs on China. Is this the beginning of a renewed, broader bout of financial turbulence, or just a pause in the roaring 2019 bull run?
After some rapid rises in stock prices this year, Mr Trump’s tweeted threat to raise tariffs on all Chinese imports by 25 per cent and slap similar duties on $325bn of Chinese goods that are currently “untaxed” was an unwelcome jolt for many investors.
US markets slid back in early trading on Tuesday — having clawed back some of their initial losses on Monday evening as some traders bet it was mere social-media posturing from the president — after being undermined when senior US officials late on Monday accused their Chinese counterparts of backtracking on promises.