President Donald Trump said Friday he would impose a 100% tariff on China “over and above any Tariff they are currently paying” effective November 1 – massively escalating his trade war amid a heated dispute over export controls on rare earths.

The pound rose on Monday, getting a tailwind from a degree of relief that U.S. President Donald Trump may not make good on his threat last week to hit Chinese goods with 100% tariffs, which gave risk-linked assets a boost.

The Chinese Ministry of Commerce said the controls, issued Oct. 9, were part of Beijing's effort to "better safeguard world peace and regional stability."

Tensions with the U.S. have risen after Trump threatened new tariffs in response to Beijing's restrictions on rare earth exports.

This was almost the perfect storm coming together,” he warned. Meanwhile, White House budget office said Friday that mass firings of federal workers have started and could to

U.S. stock-index futures bounced back strongly Sunday, following Friday’s market plunge after President Donald Trump threatened China with additional 100% tariffs.