Two of the world's largest economies imposed new tariffs on each other Sunday, intensifying a tit-for-tat tariff war. The war has disrupted financial markets and raised fears of a global recession. Negotiators from the United States and China are scheduled to meet in Washington this month, but the exact date has not yet been set.
U.S. stock markets fell Tuesday, with data showing that manufacturing activity in August contracted for the first time since 2016, with 10-year Treasury bond yields falling to their lowest level since July 2016.
Trump ignored the latest negative economic data released by the United States, tweeted that the United States had "done a good job in negotiating with China" and stressed the damage to China's economy caused by U.S. tariffs.
He warned that if the two sides failed to resolve trade disputes and if he won the general election next year, "Beijing would face stricter terms. At the same time, China's supply chain will collapse, and businesses, jobs and capital will disappear! "
He did not provide details about the negotiations or how they would become more difficult.
Thomas Donohue, chief executive of the American Chamber of Commerce, told CNBC that U.S. businesses and workers were most affected by U.S. tariffs, but China's economy was also affected.
He urged Trump to postpone the entry into force of the new tariff and give both sides time to reach an agreement.
He said Congress could pass the US-Canada-Mexico (USCMA) trade agreement, which would help boost the U.S. economy and calm financial markets. "It will affect what we do in China."
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