The US and China exchanged further blows on Friday as both sides tightened punitive tariffs, fueling a trade war that threatened to engulf the global economy.
In a quick back and forth, Beijing acted against $ 75 billion worth of American goods in response to US tariffs announced on August 1. In return, President Donald Trump increased the existing and planned tariffs to a total of $ 550 billion for Chinese products.
Trump's glowing Twitter comments cast doubt on a quick resolution to the trade war between global economic superpowers, which will include nearly all of the imports and exports exchanged between the two countries by the end of the year.
Trump accused China of "exploiting the US for trade, theft of intellectual property, and more."
Existing 25% duties on $ 250 billion worth of goods in China will be raised to 30% from October 1, Trump said.
And tariffs on $ 300 billion worth of products, expected to come in at 10% on 1 September, are now set at 15%, he said.
"China should not have raised new tariffs for $ 75 billion (for political reasons!)," Trump said
While Beijing worked on its multi-tiered collective bargaining response for three weeks, Trump's promised retaliation - which took place in a signing tweet storm - was announced in less than 10 hours.
The rapidly changing conflict is worrying US companies, many of whom rely on China when it comes to wholesale, finished product sales and manufacturing.
"It's impossible for companies to plan for the future in such an environment," said David French of the National Retail Federation.
"The government's approach clearly does not work, and the answer is not that American companies and consumers are no longer taxed. Where does that end? "
The attack came with Trump, who was expected to announce further punitive tariffs at the weekend meeting of G7 leaders in France. The tensions between Trump and the Europeans, Canada and Japan over the trade tariffs meanwhile also continue to increase.
The friction has already slowed US growth and undermined the global economy. The threat of deterioration also caused the stock markets to fall sharply.
The Dow lost more than 600 points and finished with a loss of 2.4%. The German DAX lost more than 1%, but the London FTSE gained ground.
"Our large American companies are hereby instructed to seek an alternative to China immediately. That includes ... bringing your companies home and making your products in the US, "said Trump
"We do not need China and honestly, we would be far ... better off, without them," Trump emphasized.
It was unclear under what authority Trump could demand that private companies change their production.
However, the influential US Chamber of Commerce called on the two sides to return to the negotiating table to find a solution.
"Although we share the president's frustration, we believe that continuous, constructive engagement is the way forward," said Myron Brilliant, head of the company's international affairs department, in a statement.
Meanwhile, China's punitive tariffs, ranging from 5% to 10%, now account for 5,078 US goods, and begin coinciding with new US tariffs, which are expected to come into effect in two steps from September 1 through December 15.
Beijing also announced that it would introduce a 25% duty on US cars and a 5% duty on car parts from 15 December. China had lifted these tariffs at the beginning of this year as a courtesy during ongoing trade talks.
Trump has already introduced high tariffs on $ 250 billion worth of goods, and another $ 300 billion on imports is expected in the coming rounds.
Beijing has paid USD 110 billion in tariffs on US goods, or nearly $ 120 billion of American goods it imported last year.
The Chinese Ministry of Commerce announced it would apply from 1 September with new 10% punitive duties on American frozen lobster, frozen chicken feet, peanut butter and 914 other goods.
Soybeans, crude oil and other energy products are already subject to the 5% tariff.
Mango juice, electric buses and chemical products manufactured in the US will be charged 10% duty in mid-December, while smaller aircraft, hand pumps and bearings will be charged 5% tax.
Federal Reserve Chairman Jerome Powell warned in a speech Friday that trade tensions are exacerbating the global slowdown and the central bank has no "set of rules" to deal with the consequences.
He also vowed to "act appropriately" to shore up the US economy.
An alarm bell came on the US government bond market last week as yields on ten-year bonds fell briefly below the yields of a two-year bond - seen as a sign of a looming recession - and it happened again on Friday.
US officials have announced in recent days that trade talks with China will continue next month.
However, Chinese Ministry of Commerce spokesman Gao Feng said he had no information on the next round of meetings on Thursday, but noted that the two sides were keeping in touch.
Sources: Spiegel, Bangkok Post, Thailand Tip, noz, faz