President Donald Trump declared Friday that he had “hereby ordered” American companies “to immediately start looking” for alternatives to operating in China, hours after Beijing announced new trade sanctions on U.S. products.
But as markets in the U.S., Asia and Europe tumbled, the White House offered no further details or explanation of Trump’s intentions.
Instead, the president tweeted that he would be “responding to China’s Tariffs this afternoon.”
“This is a GREAT opportunity for the United States” he wrote.
The rising tensions between the world’s two biggest economies unnerved investors already on edge about the deteriorating world economy. By early afternoon Friday, the Dow Jones Industrial Average has dropped more than 485 points.
“There doesn’t seem to be a floor under the spiraling down of the relationship, and world markets are reacting negatively to a business climate beset by uncertainty and risk,” said Douglas Barry, spokesman for the U.S.-China Business Council. “It’s unclear what the strategy is or if there is a strategy.”
The U.S. has said it plans to impose 10% tariffs on $300 billion of Chinese goods in two steps, on Sept. 1 and Dec. 15.
China responded Friday with new tariffs of 5% and 10% on $75 billion of U.S. products in retaliation, deepening a conflict over trade and technology that threatens to tip a weakening global economy into recession.
Like Trump’s, the Chinese tariffs will be imposed in two batches – first on Sept. 1 and then on Dec. 15.
China will also go ahead with previously postponed import duties on U.S.-made autos and auto parts, the Finance Ministry announced.