Investing.com - Market sentiment remained fragile on Tuesday, after U.S. President Donald Trump's latest threat to raise tariffs on Chinese goods shocked financial markets and fueled worries that trade talks may be derailed.
Trump sharply escalated tensions between the world's two largest economies when he tweeted on Sunday that he would raise tariffs on $200 billion worth of Chinese goods to 25% from 10% by the end of the week and would "soon" target the remaining Chinese imports with tariffs.
The tweets came as a surprise to market participants, as they had largely been expecting the protracted trade dispute between Washington and Beijing to be resolved soon.
Global investors who were caught off guard dumped risky assets on Monday, before markets made a comeback as some investors are holding out hope that the tariff threats are a negotiating tactic.
China’s top trade negotiator, Vice Premier Liu He, will visit the U.S. for trade talks May 9-10 at the invitation of U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, according to a statement on the Chinese Ministry of Commerce website.
To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics
-- Reuters contributed to this report