The European autos sector.SXAP was hit by trade tensions between Washington and Europe, falling 2.4 percent in a seventh straight day of losses after U.S. President Donald Trump said on Friday he aimed to hike tariffs on European Union vehicle imports by 20 percent.
"The only thing that's going to happen in the near term is on Friday the Treasury secretary is going to report to the president on the issue related to China".
The recent imposition of import tariffs by the USA, and counter-measures by other countries, are also starting to affect global production and supply chains.
The pushback took the form of Brussels and Beijing agreeing to form a group inside the World Trade Organization (WTO) dedicated to rewriting the global rules on subsidies and tech policy in the light of Trump's actions.
The German DAX lost 2.46%, the UK's FTSE dropped 2.24% and the French CAC went down 1.92% and it seems logical that we cop it today.
He adds the market also isn't concerned about tariffs that affect a small portion of goods, noting there are "many other ways that the Chinese could impact the United States economy".
Most economists warn that tariffs, including ones the USA has imposed on foreign steel and aluminium, are disrupting supply chains and risk discouraging investment and hiring. "China and the European Union firmly oppose trade unilateralism and protectionism and think these actions may bring recession and turbulence to the global economy".
But trade policy advisor Navarro, the administration's harshest China critic, has advocated a far more confrontational approach with Beijing.
China and the European Union vowed to oppose trade protectionism and unilateralism, saying those actions could push the world into recession in an apparent rebuke to the US.
Navarro, appearing on CNBC at 3 p.m., appeared to reverse the course set by Mnuchin-and with it the market.
Last week, the White House introduced a 25 percent tariff on $50 billion of Chinese imports to the country.
Also Monday, Wisconsin's Harley-Davidson tumbled more than 6% after saying it would move some production out of the United States amid retaliatory tariffs the company said would bring about a "tremendous cost increase". "The market is starting to price in that the tariffs will start to become real. It's bad for growth", he said.
Foreign investments already must pass interagency review under the Committee on Foreign Investment in the USA, to see if they violate national security.
Spokespersons for the Treasury, Commerce Department and the White House did not immediately respond to Reuters' requests for comment on the proposed restrictions.
The administration could declare an economic emergency, or IEEPA, to justify the restrictions, according to the report.
The Dow Jones Industrial Average lost almost 500 points before reversing course to close down 328 points, or 1.3percent.
European Commission Vice-President Jyrki Katainen and Chinese Vice Premier Liu He shake hands before the EU-China High-level Economic Dialogue at Diaoyutai State Guesthouse in Beijing, China, June 25, 2018.