In tit-for-tat, Trump threatens more tariffs against China

“If you read the previous statement by President Trump on the $50 billion of tariffs, he made it clear that he viewed Chinese responses to our actions not just limited to tariffs”, Navarro said, according to Bloomberg. “We have no choice”.

“The lasting damage is that American companies have built bridges for three decades that might take years to rebuild”, he said.

Volume on US exchanges was 7.12 billion shares, compared to the 6.95 billion average for the full session over the last 20 trading days.

Navarro said the main problem regarding China’s unfair trade practices stems from its targeting of the “crown jewel” of USA technology.

The US “practice of extreme pressure and blackmail departed from the consensus reached by both sides during multiple negotiations and has also greatly disappointed worldwide society”, it said.

China calls President Donald Trump’s threat to slap more tariffs on Chinese exports to the U.S.

According to Credit Suisse, though, “the oversupplied solar sector has enough non-China capacity to supply to the USA market if required”.

The Dow Jones Industrial Average .DJI fell 287.26 points, or 1.15 percent, to 24,700.21, the S&P 500 .SPX lost 11.18 points, or 0.40 percent, to 2,762.57 and the Nasdaq Composite .IXIC dropped 21.44 points, or 0.28 percent, to 7,725.59.

Shares of large USA companies with significant overseas business were hit especially hard. “Canadians have no reason to “smuggle” their shoes because their government is already helping lower their costs through proper trade deals”.

Mr Trump has threatened to put tariffs on an extra 0bn (£141bn) of Chinese goods, sparking fears of a trade war.

“China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology”, said the President.

China does not import enough from the United States to match President Donald Trump’s tariffs dollar for dollar, but President Xi Jinping can still squeeze American companies in other ways in retaliation.

In a separate statement, Lighthizer said that he supported Trump’s action and that his agency “is preparing the proposed tariffs to offset China’s action”.

Beijing reacted Tuesday to Trump’s plan to impose tariffs on another $200 billion of Chinese goods “if China refuses to change its practices”. He added that China is a “predatory economic government” that is “long overdue in being tackled, ” matters that include IP theft and Chinese steel and aluminum flooding the USA market. Those penalties are scheduled to take effect next month and will likely be followed by Chinese countermeasures.

Despite the escalating rhetoric, many on Wall Street are skeptical a worst-case scenario of an all-out trade war will come to pass.

“None of these efforts by the president and his team have resulted in any progress on the two core issues facing the U.S”. A delegation of Trump officials initially reached a preliminary deal with their Chinese counterparts on a preliminary trade deal that would have postponed the U.S. tariffs in exchange for Chinese purchases of American goods.

Turbulence is “mostly driven by sentiment”, he said, adding that China has “room to face all sorts of trade friction”.

A paper published by Canadian think tank the CD Howe Institute suggests that Mr Trump’s threats are having an effect on USA manufacturing by using “uncertainty as a new weapon in trade protection”.

The proposed measures caused upset on global stock markets on Tuesday, initially weakening both the United States dollar and the Chinese yuan.

Trump has blamed the trade imbalance between the two countries for the loss of American jobs.

With support from the Trump administration in the USA, the question is whether China will also keep its hands off the iPhone. “It’s starting to feel more like a true trade war”. “China is an increasingly small portion of imports and, with Section 201 in place, it pretty much killed prospects for anyone competitively importing from China to the U.S”.

“Everyone knows. China is the main perpetrator, ” he said.

⦁ Dan Boylan contributed to this article, which is based in part on wire service reports.