How a Trade War Could Impact Employment in the US

"I encourage the administration to sit down and find a solution to this tariff war with China that protects the US' agricultural economy, promotes fair and free trade, and protects our intellectual property", he said.

The Dow Jones industrial average lost 572 points by the close, shedding 2.3 percent.

U.S. President Donald Trump said on Friday the United States has already lost any trade war, as he defended his proposed tariffs against Chinese goods, saying the move might cause "a little pain" but the United States will be better off in the long run. Gao said comments from USA officials about ongoing talks about trade issues were incorrect. Following the U.S. administration's imposition of tariffs on aluminium and steel last month, the president ramped up the pressure by adding 25 percent tariffs to a list of 1'333 Chinese imports earlier this week. We were badly represented.

Beijing will fight take "comprehensive countermeasures" if Washington continues with "unilateral and protectionist policies" on trade, a Chinese official said on Friday.

Washington has called for the $50bn in extra duties after it said a probe determined Chinese government policies are created to transfer USA intellectual property to Chinese companies and allow them to seize leadership in key high-technology industries of the future.

If China "were to try and respond in kind, there would not be enough United States goods to tariff", said Alex Wolf, an emerging markets economist at fund manager Aberdeen Standard Investments.

Speaking to the Financial Times, professor of worldwide strategy, Chu Shulong, said the dispute wouldn't necessarily escalate into a trade war: "This is a strategy, not the start of a trade war".

The US on Tuesday published a list of US$50 billion in Chinese imports set to be hit by US tariffs.

Re "Econometer: A trade war a good thing for U.S.?"

US stocks also were affected this past Monday by Trump's new verbal attack on giant online retailer Amazon.