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Stock markets have fallen world wide within the wake of President Trump's newest tariffs risk to China.
The Dow Jones was down greater than 300 factors (1.6%) when New York trading opened and Asian and European markets had additionally fallen sharply earlier.
Mr Trump has threatened to place tariffs on an further $200bn (£141bn) of Chinese items, sparking fears of a trade war.
The United States president stated the tariffs can be imposed if China "refuses to change its practices".
He condemned China's "unfair practices related to the acquisition of American intellectual property and technology" and added: "Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong."
The markets reacted badly with China's Shanghai Composite doing the worst in Asia, ending the day down three.8%. In Europe, Germany's Dax index and France's Cac 40 had been each down by about 1.5%.
Away from Mr Trump's dispute with China, Russia introduced it could impose tariffs on sure American items in response to the latest tariffs positioned on metal and aluminium imports by the United States.
Russia's Economy Minister, Maxim Oreshkin, stated the tariffs would goal items of which the Russians already had home equivalents.
How did the most recent spat unfold?
Last week, Mr Trump confirmed that the United States would impose 25% tariffs on $50bn value of Chinese items.
Beijing responded by saying it could hit 659 US merchandise value $50bntogether with agricultural merchandise, vehicles and marine merchandisewith a related tax.
How hogs and Harleys grew to become weapons in a looming trade war
Late on Monday, Mr Trump also stated that new tariffs would "go into effect if China refuses to change its practices, and also if it insists on going forward with the new tariffs that it has recently announced".
"If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another $200bn of goods."
China's commerce ministry reacted swiftly, saying: "If the United States acts irrationally and issues a list, China will have no choice but to take comprehensive measures of a corresponding number and quality and take strong, powerful countermeasures."
What do the specialists say?
A paper printed by Canadian assume tank the CD Howe Institute means that Mr Trump's threats are having an impact on US manufacturing through the use of "uncertainty as a new weapon in trade protection".
The institute's Meredith Crowley and Dan Ciuriak have written a research through which they are saying uncertainty acts like a non-tariff barrier to impede trade and funding.
Its goal is to pressure American firms to maneuver manufacturing bases overseas again into the United States and to cut back incentives for US corporations to speculate overseas.
Ronald Temple, head of US equities and co-head of multi-asset investing at Lazard Asset Management, stated: "The post-war multi-lateral system largely rests on the United States's credibility and its dedication to the foundations and its allies.
"This credibility can be eroded by an approach that lacks clear objectives. It's getting harder for businesses and investors to shrug off this uncertainty."
How has the dispute escalated?
- January 2018the United States broadcasts tariffs on imported photo voltaic panels and washing machines
- MarchMr Trump unveils plans for a 25% tariff on metal imports and a 10% cost on aluminium
- AprilChina broadcasts tariffs on US imports starting from 15% to 25% on items starting from metal pipes to pork
- Maythe United States and China put tariff plans "on hold" after talks
- JuneMr Trump decides to push on with plans to impose tariffs in July
A possible political price
BBC economics correspondent Andrew Walker
Being robust with China performs effectively with lots of President Trump's supporters, precise and potential, at a time when he's waiting for the Congressional elections in November.
It may be that he thinks China will run out of US imports towards which to retaliate.
After all, the United States sells a lot much less to China than the opposite manner round.
But there may be additionally a potential political price for the president. Many within the Republican Party, who're extra instinctively in favour of free trade, do not assume that is the suitable technique to deal with issues with China.
And as Mr Trump will increase the vary of products topic to tariffs it turns into more durable for American importers and customers to keep away from the price by discovering different suppliers.
In the separate dispute about metal and aluminium tariffs, he additionally has to cope with the politically focused retaliation that different nations such as Mexico, Canada and the EU have in hand, meant to hit essential states within the mid-term elections.
What merchandise are affected?
The United States tariffs beforehand introduced have an effect on greater than 800 Chinese merchandise from plane tyres to generators and industrial dishwashers value $34bn and are as a result of come into impact on 6 July.
In his newest assertion, Mr Trump acknowledged that he had requested his advisers to determine further Chinese merchandise on which to impose new tariffs.
The White House says China encourages switch of mental propertydesign and product conceptsto Chinese firms, by way of measures such as requiring that overseas corporations share possession with native companions to entry the Chinese market.