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."

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

China on Thursday announced export curbs on some types of artificial diamonds set to take effect just before the U.S.-China tariff truce is scheduled to end, further tightening Beijing's grip over high-tech manufacturing supply chains.

As was the case in 2018 during his first term, Beijing has responded to the president’s attempts to reset the balance of global trade by drastically scaling back purchases of U.S. farm products, taking its business elsewhere in protest at steep levies being imposed on its own exports.