The move comes after on Friday US President Donald Trump chose to impose 25 percent tariffs on $200 billion worth of Chinese goods, also warning that Beijing should strike a deal, or the situation would be "far worse" for China. While the tariffs are aimed at delivering economic pain to China, US businesses and consumers will bear the immediate financial cost of the tariff increase. Many economists predicted the tariffs imposed on steel, aluminum, and Chinese imports past year would have much bigger economic effects than they have. On Monday he said, "We're dealing with them".
China retaliated on Monday with $60 billion in tariffs ranging from five to 25 per cent.
The United States and China appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any "bitter fruit" that harmed its interests.
A commentary in Chinese state-run news agency Xinhua, citing Chinese academics at a think tank over the weekend, said that facing US tariff hike threats, China has adhered to its bottom line, defended national dignity and people's interests.
The Dow dove 711 points, or 2.7%, to 25,230 as of 1:24 p.m.More news: Thousands of People March for Palestine in London
But in a news conference, Trump was buoyant, telling reporters that his decision to increase tariffs was "a very positive step".
"There can be some retaliation but it can't be very substantial by comparison".
There "is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today".
The announcement followed an increase of US duties on $200 billion of Chinese imports to 25% from 10% in the increasingly bitter dispute.
Paul, a leading libertarian-conservative, said the tariffs, which were increased by Trump last week as part of his pressure campaign against China in trade negotiations, may in effect nullify benefits USA companies have received from the administration's recent tax cuts. Even so, China's economy can withstand the worst of the trade war until common sense prevails and the US will also not endure extreme suffering in spite of tariffs tying one hand behind the proverbial American economic back. "We hope the United States will meet China halfway to address each other's legitimate concerns".More news: Apple’s New iPhones Reportedly Include Multiple Upgraded Camera Features
"The two presidents maintain contact through various means", he added, without confirming a possible meeting between the two leaders. Business groups say that exodus is accelerating as some other companies shift production of goods for the US market to other countries.
U.S. Agriculture Secretary Sonny Perdue said on Friday that Trump had asked him to create a plan to help American farmers cope with the heavy impact of the U.S.
"Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically".
"It's US businesses and USA consumers who pay, correct?' asked 'Fox News Sunday" host Chris Wallace.
Trump's pledge on Friday to buy American farm products that China normally imports and distribute them to poor countries drew criticism from Canada.More news: Eden Hazard makes transfer claim amid Real Madrid rumours
Trump's saber-rattling came after his top economic adviser spent the weekend trying to defuse the trade war and demonstrate that trade negotiations between the two countries were moving forward.
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