Squawk Box anchors discuss the sell-off in equity markets amid heightening US-China tensions following President Trump’s sudden pledge to hike tariffs on $200bn of Chinese goods from this Friday. Asian stocks plummet and US futures point to a sharp decline on fears that Beijing could pull out of this week’s round of trade talks. St. Louis Federal Reserve President James Bullard tells CNBC that the central bank may have to rethink its rates strategy on the back of record employment levels. And in the UK, Prime Minister Theresa May urges Labour leader Jeremy Corbyn to come to a cross-party agreement on her Brexit deal.

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