London (CNN Business) 1. Trade deadline: The Trump administration said Monday that it will move forward with a threat to increase tariffs on $200 billion of Chinese goods later this week.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin said China reneged on previous commitments over the weekend, undermining progress towards a detailed trade agreement.

As of Friday, penalties on $200 billion of Chinese goods will be lifted to 25% from 10%. President Donald Trump has also warned that he could tax nearly all Chinese exports to the United States.

The big question for investors is whether a deal can be salvaged when Chinese officials arrive in Washington later this week. Beijing is still sending its top trade negotiator.

Stock markets in China stabilized Tuesday after a sharp sell-off on Monday. US markets were also able to recover most of their lost ground after a steep initial plunge.