New York (CNN Business) The Dow closed sharply in the red — marking its third day of losses — after President Donald Trump said a trade deal with China might not be accomplished until after the 2020 election.

Trump on Tuesday suggested to reporters in London that a trade deal with Beijing might come much later than many expected, saying "in some ways I think it's better to wait for after the election if you want to know the truth."

This contradicts Trump's earlier statements about negotiations going well. But investors chose to focus on the downside risk, because a trade deal between the United States and China has been pretty much priced in ever since the two countries came to a preliminary verbal agreement in October . This agreement was never signed.

Commerce Secretary Wilbur Ross told CNBC that delaying a trade deal could take leverage from China. Ross added that it was important the president made clear that he wasn't under any time pressure to get a deal done.

The secretary also said that US import tariffs would continue unless there was a deal. The next round of tariffs is set to take effect on December 15.

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