I'm Lydia Hu, and this is the Fox Business Rundown.

Monday, October 13th, 2025, rattled markets appeared to be on the rebound following this weekend's tariff tensions between the United States and China.

China is the biggest trade deal that we have to get done that the president needs to get done.

It's going to take the longest.

We've gotten spoiled by other deals coming relatively quickly based upon historical precedents.

But this is not going to be done until it's done.

So I think, yes, we should expect more headlines on China and the U.S. and tariffs to spook the markets.

China is threatening today to retaliate if President Trump keeps his word and imposes a steep

tariff increase on all Chinese items starting November 1st. On Friday, the president said he

would put a massive increase of tariffs on China after they

announced export restrictions on key items, including rare earth minerals.

The apparent escalation in the trade war between the two nations sparked a sell-off.

However, investors' nerves calmed a bit on Sunday when the president attempted to bring down

the temperature with China and assure Americans on a truth social post when the president attempted to bring down the temperature with China and

assure Americans on a truth social post, things would be fine. So how focused are investors on this

latest spat over China trade and how confident are they in the president to get a deal with the

biggest foreign competitor? Lou Bassanese is the executive vice president of market strategy at Prairie Operating Company.

Yeah, I mean, there's so much to unpack here, but I always like to try and simplify things.

And I would tell you this, that the markets absolutely hate uncertainty they have since they're

founding. And Friday just caused a tremendous amount of uncertainty when you talk about

going to an additional 100% tariff. But here's the thing. Politics and politicians love

creating uncertainty because it provides leverage in negotiations. And I think President Trump's

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