On Monday, Trump said the tariffs will go up immediately if Xi Jinping does not attend the G20 event on June 28-29 in Osaka, Japan to hold trade talks with the US. Trump appeared to have called in response to the U.S. Chamber of Commerce, which had criticized Trump for using the threat of tariffs to force Mexico to do more to halt the flow of migrants across the U.S. southern border.
President Trump also said China will eventually come back to the negotiating table on trade.
Investors worry China will retaliate by putting USA companies on a blacklist or banning exports to the United States of rare earth metals, which are used in products such as memory chips, rechargeable batteries and cell phones.
An emboldened President Trump said Monday that his tariff threat forced Mexico to strike a border deal, and he vowed that China will be the next target brought to heel by weaponization of access to the USA economy.
"They were so against me during my election run, and everybody said if you don't have them, you can't win", he said. Skeptics in the mainstream media relentlessly warned that tariffs would only hurt the US economy by stifling GDP growth and job creation, and the European Central Bank even predicted that China would emerge from the "trade war" unscathed.
Washington last month put Huawei on a blacklist that effectively bars US firms from selling to the company without government approval. We got everything we wanted. "They build a vehicle in China and they sent it into the United States".
While successful avoidance of Mexican tariffs and likely break of trade impasse at G20 pleased risk takers on Monday, recent warnings from the United States lawmakers to Mexico and China seem directing immediate bullion moves.
The president also complained that even though he selected four of the Fed's five board members, including elevating Jerome Powell to chairman, "We have people on the Fed that really weren't, you know, they're not my people", Mr. Trump said in a telephone interview with CNBC's "Squawk Box".
Barnes & Noble buyout: Barnes & Noble sold to hedge fund Elliott Management
The book retailer and Elliott Management Corp. announced Friday that they have agreed to a sale price of about $683 million. The bricks-and-mortar giant, on the other hand, has seen its revenue slide each year for the past several years.
But President Trump also used some of the airtime to respond to questions about the growing power of tech companies as well 5G, Huawei and the proposed T-Mobile-Sprint deal. But the USA delegation left without any significant breakthrough on China.
"It's put them at a tremendous competitive advantage and we don't have that advantage because we have a Fed that doesn't lower interest rates", he said, adding "our Fed is very, very destructive to us". "We're expected to meet and if we don't that's fine and if we do that's fine".
With the Mexico standoff temporarily resolved, much of the focus will now shift back to Trump's approach with China.
"Obviously there is something going on in terms of monopoly", Trump said. "They want to make a deal much more than I do, but we'll see what happens".
Trump meanwhile again hinted that part of the deal he struck with Mexico is not yet public.
If Trump carries out his threat to extend the 25% charge to all imports from China, it will start hitting vital communication tools and everyday consumer goods.
News of the US-Mexico deal brought some relief to global stock markets on Monday, and the Mexican peso gained more than 2 percent against the US dollar, recovering some of its losses from recent weeks.
He has claimed that the country agreed to purchase large amounts of US agricultural products as part of the agreement, but Mexican officials say there is no such provision.