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He said in the interview his tariffs could impact Apple products imported from China, including iPhones and laptops.

While others in the administration are also clearly concerned about China's growing geopolitical influence and see its "One Belt, One Road" initiative as inimical to U.S. interests, Trump's perspective is narrower and more parochial.

"Trump's pessimistic view on the chances of a game-changing China trade deal may puncture global equity markets' optimistic start to the week", said Sean Callow, a senior FX analyst at Westpac in Sydney.

China aims to persuade the USA not to impose the larger tariffs, but Trump said it was "highly unlikely" he would back down.

In an interview with The Washington Post, Trump said he is awaiting a report from his national security team on the incident, but "maybe I won't have the meeting".

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Stocks on Wall Street logged modest gains on Tuesday as traders remained hopeful that the United States and China can work toward resolving their trade-related differences at the upcoming G20 Summit. 'I mean, I can make it 10 per cent, and people could stand that very easily'. Kudlow said there were no scheduled talks on the ground for their advisers.

American officials are reportedly focusing on the cybersecurity risks of the Chinese telecom.

Sterling was weaker across the board after Trump said on Monday the agreement allowing the United Kingdom to leave the European Union may make trade between Washington and London more hard. Trump's threat comes as the tech giant weathers concerns about slowing demand for the iPhone that have pushed company shares into a bear market in recent days.

Asked whether the two sides had agreed on a list of agenda items for the leaders to discuss, Kudlow said: "We're in some significant preparation on all that".

"The only deal would be China has to open up their country to competition from the United States", Mr Trump told the Wall Street Journal."As far as other countries are concerned, that's up to them". What would the United States do?' Xu told a small group of reporters in Beijing on Tuesday, adding that China accounts for at least half of the market for many US listed companies. Washington and Beijing remain at odds on key issues such as US accusations of intellectual property theft and forced technology transfer, he said.

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