November 27, 2018: Asian markets were mixed Tuesday as dealers focused on crunch G20 talks between Donald Trump and Xi Jinping, with the US president warning he will ramp up his trade war with China if the two do not reach a deal.
With the economic superpowers in the middle of an increasingly bitter standoff, there are hopes the two leaders will be able to work out an agreement that brings them back from the brink of a tariffs row that threatens to dent global growth.
In an interview with the Wall Street Journal published Monday, Trump said he thought it “highly unlikely” the US would hold off more than doubling duties on $250 billion of Chinese imports if there is no breakthrough.
“If we don't make a deal, then I'm going to put the $267 billion additional on,” he told the newspaper, referring to the remainder of Chinese imports that so far have not been hit with tariffs.
“The only deal would be China has to open up their country to competition from the United States.”
While some observers suggested the comments were a typical Trump ploy to apply maximum pressure on Beijing heading into the meeting, there remain fears about what the tycoon has in mind.
“It doesn't sound like we will see Donald the Deal Maker but instead Trump the Trade Warrior at G20,” said Stephen Innes, head of Asia-Pacific trade at OANDA.
Asian traders moved cautiously in early exchanges after Monday's global rally, which was fueled by rising oil prices, Italy's softer tone in its budget standoff with Brussels and Britain's Brexit agreement with the European Union.
