Washington — US President Donald Trump on Tuesday held out the possibility of an extension of the 90-day trade truce with China but warned he would revert to tariffs if the two sides could not resolve their differences. Trump said his team of trade advisers led by China trade hawk US trade representative Robert Lighthizer would determine whether a “REAL deal” with Beijing was possible. “If it is, we will get it done,” Trump wrote in a Twitter post. “But if not remember, I am a Tariff Man.”

The threat of an escalating trade war between the world’s two largest economies has loomed large over financial markets and the global economy for much of the year, and investors initially greeted the ceasefire agreed by Trump and Chinese President Xi Jinping over the weekend with relief. However, following Monday’s rally, markets on Tuesday sold off as doubts over what could realistically get accomplished in the tight negotiating window added to concerns about fading global growth. The Dow ...

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