Stocks fall amid Trump tariffs

STOCKS mostly sank with the dollar yesterday after US President Donald Trump last week lobbed a fresh trade missile by doubling tariffs on steel and aluminium and accused China of violating last month’s agreement to slash tit-for-tat levies.

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The US president’s comments were followed by claims by his commerce secretary that Beijing had been slow to implement the deal, which helped rally markets last month and fanned hopes for a lasting detente between the world’s top economies.

Still, Treasury Secretary Scott Bessent who last week warned negotiations with China were “a bit stalled” - said the US leader could speak with his Chinese counterpart, Xi Jinping “very soon” in talks that could help break the impasse.

The latest salvos from the White House came as it faces a legal battle after a trade court on Wednesday blocked Trump’s “Liberation Day” tariff blitz, saying he had overstepped his authority with the across-the-board taxes.

An appeals court gave the levies a stay of execution on Thursday but the wrangle could drag on, causing more uncertainty.

Trump said Friday he would jack up steel and aluminium to 50%, from 25%, which he said “will even further secure the steel industry”.

He also claimed Beijing had “totally violated” last month’s agreement with China to cut eye-watering tariffs for 90 days to hammer out a broader package.