Trade Gloom Hits Materials Midday

Materials stocks were in the red in midday trading as a deal between the U.S. and China looked as distant as ever.

The S&P 500 Materials index lost about 1.41% at 12:15 PM ET (17:15 GMT).

A trade deal between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping is increasingly unlikely after Trump told The Wall Street Journal he probably wouldn’t hold off on rising Chinese tariff rates. The tariff rise to 25% on $200 billion worth of imported goods is expected to take effect on Jan. 1.

The two leaders are scheduled to meet in the sidelines of the G20 summit in Argentina at the end of the week.

Among the most active stocks, Newmont Mining (NYSE:NEM) fell about 2.5%, while DowDuPont (NYSE:DWDP) dipped about 1% and Eastman Chemical (NYSE:EMN) fell about 2.5%.

PPG Industries (NYSE:PPG) decreased about 1%, while International Paper (NYSE:IP) slipped about about 0.5%.

U.S. Steel NYSE:X slumped about 7.5%.

Meanwhile, German newspaper Wirtscharfts Woche reported that Trump could impose tariffs of 25% on autos as soon as next week.

General Motors (NYSE:GM), Ford (NYSE:F) and Fiat Chrysler (NYSE:FCAU) were all in the red on worries about retaliatory trade action.