Shanghai — Global financial markets tumbled on Monday after US President Donald Trump unexpectedly jacked up pressure on China to reach a trade deal in the midst of negotiations, saying he would hike US tariffs on Chinese goods this week. Equity markets, which have been largely expecting the two sides to reach a trade accord soon, fell sharply as further talks to end their bruising trade war were thrown into doubt. Chinese shares plunged more than 6% at one point, while US stock market futures fell close to 2%. Oil prices sank and the Chinese yuan weakened sharply. Trump sharply escalated the tension between the world’s two largest economies with tweeted comments on Sunday that trade talks with China were proceeding “too slowly”, and that he would raise tariffs on $200bn of Chinese goods to 25% on Friday from 10%. He also said he would target a further $325bn of Chinese goods with 25% tariffs “shortly”. The tweets upended the previously calm market mood that had benefited from signs...

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