He later explained that he was referring to the 1977 International Emergency Economic Powers Act (IEEPA), and in a Friday tweet wrote: "For all of the Fake News Reporters that don't have a clue as to what the law is relative to Presidential powers, China, etc., try looking at the Emergency Economic Powers Act of 1977".
China's commerce ministry issued a statement on Saturday condemning Trump's threat, saying, "This kind of unilateral, bullying trade protectionism and maximum pressure go against the consensus reached by the two countries' heads of state, violate the principles of mutual respect, equality and mutual benefit, and seriously damage the multilateral trading system and normal worldwide trade order".
A 30 per cent tariff on US$250 billion (S$347 billion) of goods from China, now subject to a 25 per cent tariff, will take effect on Oct 1, Mr Trump announced on Twitter after the day's trading closed.
President Donald Trump doubled down Friday night on his threat to order US businesses out of China as part of an escalating trade war. A scheduled 10 per cent tariff on US$300 billion of Chinese goods on Sept 1 and Dec 15 will also be raised to 15 per cent, he added.
Beijing also announced it will reimpose a 25 percent tariff on United States autos and a 5 percent tariff on auto parts, also starting December 15. Mr. Trump's stiff tariffs on Chinese goods have been met with reciprocal levies, hurting American farmers and companies and contributing to a global slowdown. It takes years to build relationships that meet compliance standards and deliver quality products, yet we have been given weeks and in this case days.
The news will do little to quell fear among analysts and investors that the USA and some other major global economies are heading toward an economic slowdown that's being exacerbated by the trade war. The US has struggled to win concessions from China on issues it said put American businesses at a disadvantage, such as intellectual-property theft and large-scale state subsidies.
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"China doesn't want to fight this trade war", the post said.
The friction has already slowed United States progress and undercut the worldwide financial system, and the specter of a deterioration despatched inventory markets falling sharply.
Trump escalated "trade frictions" and is "seriously threatening the multilateral trading system", the Finance Ministry said.
The National Retail Federation slammed Trump's latest tariff vow in a statement, saying it is a dead end.
Powell, speaking to central bankers, gave vague assurances that the Fed would act to sustain the nation's economic expansion, but noted that Fed had limited tools to deal with damage from the trade dispute.
Trump has said China pays the tariffs he has imposed on Chinese goods, but tariffs are paid by US-registered firms when the products enter the United States.
Losses on Wall Street were initially muted - in part because stocks were set to open higher on Friday prior to China's announcement. "They don't know actually where the supply chains will go and they don't know where the tariffs will remain".
Stephen Moore, former senior advisor to Trump's 2016 presidential campaign and distinguished visiting fellow at Washington-based think tank The Heritage Foundation, previously told The Epoch Times that the August 1 tariffs were a negotiation tactic to force progress in the trade talks.