Trump vows to raise tariffs on $200 billion worth of Chinese goods
Trading in the U.S. stock index futures suggests that Wall Street may start the week lower after President Donald Trump threatened to increase tariffs on Chinese goods.
On Sunday, Trump tweeted that he would hike tariffs on $200 billion of Chinese goods to 25% from the current 10% this week. The president also disclosed that he plans to impose 25% tariffs on an additional $325 billion of goods soon.
“The trade deal with China continues, but too slowly, as they attempt to negotiate. No!” the president tweeted. Trump’s move marks a major escalation in the monthslong trade war between the U.S. and China.
Many investors were assuming that trade discussions between the two sides were going on smoothly, and that Washington and Beijing negotiators were close to striking a deal. Early reports on Monday indicated that China might pull out of this week’s scheduled meetings in Washington, following Trump’s tweets.
As of 5:22 a.m. ET, futures on the blue-chip Dow moved down 521 points, or 1.97% to 25,978. Futures on the tech-heavy Nasdaq were down 186.5 points, or 2.37% to 7,678.5 while those on the S&P 500 receded 55.12 points, or 1.87% to 2,892.38.
Trump tariff threats pull crude prices lower
Oil prices on Monday gave away all of the gains made last month after President Trump threatened to sharply increase tariffs on Chinese goods, a move that would derail months of trade negotiations between Washington and Beijing.
Brent crude, the international oil benchmark, was down $0.87, or 1.2%, to $69.98 as of 5:27 a.m. ET. West Texas Intermediate (WTI), the U.S. marker, was at $60.97 per barrel, a decline of $0.97, or 1.6%.
Occidental revises its bid to acquire Anadarko
Occidental Petroleum Corp (NYSE: OXY) on Sunday revised its cash-and-stock proposal to buy Anadarko Petroleum Corp (NYSE: APC), raising the cash portion from 50% to 70% in an effort to outbid Chevron Corp (NYSE: CVX).
Texas-based Occidental also removed any requirement for a shareholder vote, according to its letter to Anadarko’s board of directors. Anadarko shares were up 2.24% to $74.35 in pre-market trading session on Monday, while Occidental Petroleum stock dropped 0.55% to $57.63 apiece.
Earnings alert
Investors are awaiting several quarterly financial results today. Tyson Foods, Inc. (NYSE: TSN), Delek US Holdings, Inc (NYSE: DK), Sysco Corp (NYSE: SYY) will release their results before the opening bell.
Companies reporting after the close include Occidental Petroleum Corp (NYSE: OXY), Hertz Global Holdings, Inc (NYSE: HTZ), FMC Corp (NYSE: FMC), American International Group, Inc. (NYSE: AIG).
