Ultimately, most analysts think that the move will harm the USA economy by pushing up inflation at home as U.S. citizens need to pay higher prices for the foreign goods that they want.
Trump's view is that China employs a number of trade policies that are unfair to the US, including stealing technology, keeping their own market closed off to foreign firms, and keeping their currency artificially low to make Chinese suppliers look cheaper. Incompetence is a bad thing to watch, especially when things could be taken care of so easily.
The Fed reduced its key policy rate by a quarter point last week but Trump is pushing for more interest rate cuts.
Indeed, Federal Reserve Bank of St. Louis President James Bullard said this week that the central bank would not deliver an interest rate cut each time there were policy threats or announcements on the trade war that roiled markets.
Mr Trump again lashed out at the U.S. central bank, demanding more economic stimulus as the 2020 presidential elections approach, and accusing the Federal Reserve of posing more of a threat than China.
In this July 31, 2019, photo, Federal Reserve Chairman Jerome Powell speaks during a news conference following a two-day Federal Open Market Committee meeting in Washington.
Maharashtra floods: 12 navy teams bound for Sangli
The Pinarayi Vijayan administration in the state has reportedly set up over a thousand relief camps to house displaced people. The state's busiest airport, Cochin International Airport, has been closed since Friday as the taxiway is water-logged.
A closely-watched bond market gauge of US recession risk flashed its biggest warning since March 2007 on Monday, underscoring concerns the spillover from the battle between the world's two biggest economies over trade will accelerate a global downturn.
India, Thailand and New Zealand cut interest rates overnight, prompting a fresh Twitter attack on the US Federal Reserve by President Donald Trump.
Fresh turmoil this week between the United States and China only raised the prospect the Fed may have to cut rates even more this year to avoid a collision course that could deeply damage the world economy.
White House trade adviser Peter Navarro on Monday called on the Federal Reserve to cut key rates by three-quarters of a point to one point by the end of 2019 to bring US rates in line with others.
The former chairs - Paul Volcker, Alan Greenspan, Ben Bernanke and Janet Yellen - argued in an opinion piece published Tuesday in The Wall Street Journal that history has proven that central banks deliver the best results for the economy when they act "independently of short-term political pressures".
Fed chairman Jerome Powell said the most recent interest rate cut was needed to bolster economic growth threatened by uncertainty in US trade policy. Powell, meanwhile, has repeatedly stressed the Fed's commitment to independence and said he fully intends to serve a four-year term.