US President Donald Trump has threatened to reignite the trade war with China, by announcing he will impose tariffs on $US525 billion ($753 billion) of Chinese goods because Beijing is moving too slowly on a deal.
Experts say Trump still appears to have an upper hand in the trade negotiations not least because of surging United States equity markets and a strong labor market, which have reduced fears of a slowdown.
'For 10 months, China has been paying Tariffs to the US of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods.
He also proposed putting levies on another $325 billion worth of Chinese goods.
Washington and Beijing have engaged in reciprocal tariff hikes over the past year while negotiators have engaged in lengthy trade talks, alternating negotiations between the two capitals.
The U.S. guided-missile destroyers Preble and Chung Hoon reportedly sailed near Chinese-claimed islands on Monday.
Shanghai and Hong Kong equities led big losses across the region, with the Chinese yuan also taking a battering after the president threw a spanner into the high-level negotiations, which many observers were expecting to wrap up imminently. Companies that import goods or parts from China may or may not pass on costs to consumers, but they usually act to offset rising costs somehow, including potential job cuts.
Trump threatened to ratchet up existing import tariffs of 10% on $200bn (£153bn) of Chinese goods sold in the United States that have been in place for nearly a year to 25%.
Canada's main stock index followed stock markets around the world lower after U.S. President Donald Trump threatened to escalate a trade war with China.
"President Trump set the tone for the week, expressing dissatisfaction at the pace of China trade negotiations amid Beijing's attempt to renegotiate", Rodrigo Catril, a senior foreign-exchange strategist at National Australia Bank, wrote in a morning note. "China trade tensions, a year ago was still a record for overall trade volumes between the two economic giants", Jake McRobie, U.S. economist at Oxford Economics, wrote in March.
So, as Trump is sticking it to Beijing even harder than he already has, it is perhaps fitting that he is winning approval for the move from the leader of the opposition party in the U.S. Senate. "China trade talks", said Lu Ting, chief China economist at Nomura Holdings Inc.in Hong Kong. Oil prices were also down, with crude futures dropping 26 cents to $61.68 a barrel.
The impetus for Trump's Twitter tantrum seems to have been a Sunday meeting with some of his top trade aides, who reportedly delivered a disappointing message.
Chinese news outlets have been told not to independently report on Trump's tweets, and instead adhere to any report from the official Xinhua news agency, said a source with direct knowledge of the matter. "First, focused on US domestic audiences, he wants to appear to be "tough" on China, and to maintain his image among domestic constituencies as a trade warrior fighting on behalf of the US", Geoffrey Gertz, a fellow at the Brookings Institution, told DW.
The president is well-known for ramping up the rhetoric in trade negotiations, and has previously said he can only secure new trade deals by threatening or imposing tariffs on trading partners.
Trump said Sunday on Twitter, "For 10 months, China has been paying Tariffs to the U.S. of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods".