Stocks slump in global sell-off after Trump's China tariff threats

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"This year is tough for China as the country will face greater downward pressure on growth in coming months due to the deleveraging campaign and slowdown in some major export destinations".

China threatened to retaliate, leading Trump to propose broader penalties.

Trump's move on Monday came shortly after the Senate voted to reinstate a ban on Chinese tech company ZTE, barring it from buying components from USA manufacturers.

In fact, its top trade advisor insisted that Beijing has more to lose in a potential trade war with Washington. But the lopsided status of U.S. In early European trade London fell 0.8 percent, Paris 1.3 percent and Frankfurt was 1.5 percent down.

-China dispute sent global stock markets skidding and weakened both the dollar and the Chinese yuan on Tuesday. In Europe, Germany's Dax index and France's Cac 40 were both about 1.5% lower in afternoon trading.

The Business Roundtable, representing companies with more than $7 trillion in annual revenue, said the administration's feud with China "will only make it harder to achieve a fair and level playing field for American companies to compete in China".

US stock markets are set for a sharply lower open as tensions over trade between the USA and China seem closer to a boil.

China's tariffs had themselves been a reaction to Trump's announcement on Friday that the US would be imposing a 25 percent tariff on $50 billion of Chinese goods. Late Monday, Trump also announced he might pursue $200 billion more in tariffs on Chinese goods, though it was unclear whether the list would include more chips or computing products that might impact Intel.

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The U.S. imported US$505 billion of goods from China past year and exported about US$130 billion, leaving a 2017 trade deficit of US$376 billion, according to U.S. government figures.

Beyond tariffs: How else can China hit United States products?

The ongoing trade dispute between the United States and China knocked the yuan to 6.4660 per dollar, its weakest in more than five months in the offshore market.

"The fundamental reality is that talk is cheap", Navarro told reporters on a conference call, again accusing China of "predatory" trade policies. No, we're treated horribly'.

"The actions President Trump has taken are purely defensive in nature", he said, asserting that "China does have much more to lose" because it sells so much more to the US than it buys.

Trump has argued that it would be easy for America to win a trade war with the Chinese, since nations with trade deficits have an inherent advantage in such conflicts.

Meanwhile, Canadian officials have stressed the two countries' extensive trading relationship and pointed out that Canada is the top export destination for 35 US states and that 9 million jobs in the United States depend on trade with its northern neighbor.

Mr. Navarro said China is seeking by 2025 to control 70 percent of US industries such as aerospace, agricultural machinery, artificial intelligence, biotech, business application software, electronics, new generation IT, precision farming, robotics, and satellite communications. China so far has said it would target only smaller versions of the jet and the country's options are limited since competing planes from Europe's Airbus are largely sold out for the next several years.

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