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Trump China trade war: Apple st5ock sinks and British pound retreats

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Apple store
Trump warns that iPhones may get slapped with
tariffs.

Ng Han
Guan/AP


  • President Trump said on Monday night that he is
    considering tariffs on Apple products, which had previously
    been spared. Apple’s stock fell 1.4% in premarket
    trading.
  • The pound has also lost ground after Trump said Theresa
    May’s Brexit deal threatens a future trade deal between the UK
    and US.
  • Trump is threatening to escalate his trade war with
    China and warned of more tariffs. Global markets were even
    despite the comments.  

  • Follow
    global markets live with Markets Insider.

US President Donald Trump’s threats about slapping tariffs on
iPhones sent Apple’s stock tumbling, while his barbs about Brexit
sent the pound lower.  

In a chat wth the Wall Street Journal, Trump threatened to

escalate the trade war further,
 saying it is “highly
unlikely” that the US and China will reach a deal to prevent
the 10%
tariff
 on $200 billion worth of Chinese
goods from increasing to 25% on January 1. 

He also said that if weekend talks with Xi at the G20 summit in
Argentina do not go well, more tariffs could be on the way.
Global stock markets posted minimal up and down moves, despite
the comments. 

If we don’t make a deal, then I’m going to put the $267
billion additional on,” Trump said.


Read more: Trump
is ready to go all-out in the trade war with China, and even the
iPhone may not be spared

Trump’s comments came towards the end of a strong day for US
stocks, with companies boosted by what was expected to be the
biggest online shopping day in US history, Cyber Monday.


The day saw all three major US indexes close more than 1%
higher,
while European stocks also rallied, shored up by
waning tensions over both the Italian budget crisis and Brexit.

That optimism might be tested on Tuesday, with minor declines in
tech stocks and US futures. 

Apple shares fell 1.4% in early morning trading before markets
opened on Tuesday, after the president signalled a willingness
to place tariffs on items such as Apple’s iPhone and
laptops imported from China. Apple had previously been spared
from the tariffs after lobbying the administration, but Trump may
have changed his mind.

Also falling: The British pound, after Trump made a series
of less than reassuring comments about any possible future trade
deal between the UK and US after Brexit.

“We have to take a look at seriously whether or not the UK
is allowed to trade, because you know, right now if you look at
the deal they may not be able to trade with us, and that wouldn’t
be a good thing,”
he told reporters on Monday evening.

Those remarks sent the pound lower by about 0.5%, trading
at 1.27 against the dollar.

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