Trump's latest trade barbs are hammering Apple stock and the British pound
- 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.
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.
Read the full article from it’s original source: http://uk.businessinsider.com/trump-china-trade-war-apple-st5ock-sinks-and-british-pound-retreats-2018-11