Markets dive after ‘Tariff Man’ threat by Donald Trump

US President Donald Trump and Chinese leader Xi Jinping agreed to give negotiators 90 days to resolve their trade spat after they met in Buenos Aires at the G20 summit

DEVELOPING: US-China trade uncertainty fuels market plunge

Global markets cheered the weekend accord on Monday, only to reverse course Tuesday as doubts emerged over exactly what the world's two largest economies had agreed on.

"We are confident in implementation", the Chinese commerce ministry said, describing negotiations as "successful".

'Very strong signals being sent by China once they returned home from their long trip, including stops, from Argentina.

Trump agreed he will leave the tariffs on $200 billion worth of Chinese products at 10 percent, and not raise it to 25 percent as he has threatened to do January 1, according to a White House statement. We are right now taking in $billions in Tariffs.

That includes more purchases of US farm products, which Trump - seemingly trying to remind Xi - has said will begin "immediately".

White House trade adviser Peter Navarro on the trade truce between the US and China.

In a "supremely ironic" move, China may even seek to negotiate entry to the TPP-11, which was originally conceived by the Obama Administration as part of pivot to Asia, and which may end up including China but not the US itself, he said.

US President Donald Trump has held out the possibility of an extension of the 90-day trade truce with China but made clear he would revert to tariffs if the two sides could not resolve their differences.

"It doesn't seem like anything was actually agreed to at the dinner and White House officials are contorting themselves into pretzels to reconcile Trump's tweets (which seem if not completely fabricated then grossly exaggerated) with reality", JPMorgan Chase said in a trading note.

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"When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so".

Trump didn't help when he tweeted 'I am a tariff man, ' which investors saw a sign a deal may not happen.

Trump has argued that China for decades has abused global trade rules to lure away United States jobs, steal U.S. intellectual property, subsidise its own companies, and strong-arm USA firms.

Officials from the United States and a number of other major economies have often criticized China for its slow approach to negotiations and not following through on commitments. Instead of being hammered out by lower-level officials, he said Xi came very prepared for the conversation, and that the deal was mostly done by the two leaders. Mnuchin said Monday morning on CNBC that China had offered to buy up to US$1.2 trillion of additional U.S. goods, even while the "details of that still need to be negotiated". "It will now be considered a 'controlled substance,"' Trump said in another tweet Wednesday, subsequently adding that China would see "incredible" results if it imposed the death penalty on "distributors and pushers".

"Narrow agreements and modest concessions in the ongoing trade dispute will not bridge the wide gulf in their respective economic, political and strategic interests", Moody's Investors Service said in a report that predicted U.S.

Trump's words had the effect of making the already vague and uncertain weekend agreement seem even less likely to produce a long-lasting trade accord.

One of the few automotive stocks to score a gain on Tuesday was Tesla which only recently began work on a new factory in Shanghai that eventually will let it sidestep the tariff battle.

A Chinese official told the Reuters news agency officials were "waiting for the leaders to return" before publicising details. The White House has alleged that China pledged to purchase a "very substantial" amount of agricultural, energy, industrial and other products from the United States, to help narrow the current trade deficit.

The tone of Mr Trump's latest tweets shows an apparent shift from 24 hours earlier, when he was unreservedly triumphant, saying relations with China had taken a "big leap forward".

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