Donald Trump doubles the trade threat to China

"I hate to do that, but behind that, there is another $ 267 billion ready to be sent quickly if I wish," he said.

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Official government figures showed that the United States imported $ 505 billion worth of goods from China last year.

The rise of the president because of growing confidence in the White House allows him to put pressure on China because the US economy is showing more and more signs of growth.

Figures released Friday show that unemployment fell in August to 3.9 percent, while wage growth reached annual highs of 2.9 percent, the largest increase since April 2009.

The Australian market is facing the longest run of losses since the global financial crisis, as worried investors worry about the US-China trade dispute, coupled with the emerging markets' defeat and the cautiousness of the US. high values.

The S & P / ASX200 benchmark fell 3.3%, as the market recorded seven consecutive losses, with Trump increasing the threat. The Australian dollar was caught up in the maelstrom below 71 ¢ US over the weekend, rising from 80 ¢ US last January.

"Trump's threat shows that he remains fully invested in a maximum-pressure campaign against Beijing," said Jeffrey Wright of the Eurasia Group.

"Many in the White House, including Trump, believe that Washington's tariffs have hurt the Chinese economy and will make Chinese leaders desperate enough to address the structural concerns at the heart of the conflict.

But according to the former central bank governor, Zhou Xiaochuan, who retired this year, the US tariffs on China, considered in light of the size of the economy, are "not very significant ". Nevertheless, he said that the transmission of trust is a potential route of disruption.

"People can get nervous," he told Bloomberg. "Nobody really knows, suddenly there is a trade war, they can change their minds in terms of stock market investment."

While US economic data on jobs and wages favor the president as he faces a difficult battle to prevent Democrats from gaining control of the House of Representatives in November, imposing such large rate hikes is politically risky. They will increase the price of almost everything Americans consume.

And they will most likely trigger new impetus from China, which will weigh on the politically sensitive manufacturing and agricultural sectors of the US economy.

"The US industry remains divided, with many companies favoring the tough position the administration is taking on China's industrial and trade policies and forced technology transfer systems," Wright said.

But other sectors are worried about the impact of tariffs on their global supply chains, which pass through China.

A key deadline expired Thursday so businesses and members of the public could comment on plans for a second set of tariffs on a host of consumer goods. Large tech companies, retailers and other companies have bombarded US sales representative Robert Lighthizer before the deadline with calls to end the escalation.

Mr. Trump launched his bullish threat after a murderous week in Washington DC, which saw the publication of a damning account of his government by presidential columnist Bob Woodward and an anonymous editorial The New York Times by a "senior official of the administration" who strongly criticized the president.

The twins fueled the speculation that Mr. Trump would react to turn away from his scandal-prone administration. Opening a new tariff front sends the president back to a competition where he believes he has the upper hand, White House experts say.

Using language rarely heard since the wars in Iraq and Afghanistan on September 11, 2001, White House economic adviser Larry Kudlow said on Friday that the United States wanted to form a "coalition of volunteers" to challenge the China.

"The Chinese, you know, can be more isolated if they do not participate in the global process," Kudlow said in an interview with CNBC.

Mr Kudlow said the group would include the European Union, Japan and other allies. The appeal is remarkable, as most of these savings were the target of Trump tariffs this year for steel and aluminum. However, a more unified approach to China could be considered, as the EU agreed in July a truce with the United States. The president this week also hinted that there was a major deal in the works with South Korea.

China's trade surplus with the United States hit a record $ 31.1 billion in August, with analysts saying exporters are increasing orders before the next round of tariffs.

The figures underline China's room for maneuver to retaliate against any Trump tariff.

Beijing has announced plans to import an additional US $ 60 billion, bringing the total to 110 billion US dollars, or 85 percent of what China buys from the United States, Wright said.

"This momentum also means that Beijing will be more supportive of non-tariff retaliation, but it will remain reasonably calibrated," he said.

"Beijing's strategy is to ensure that US companies feel pain, but to avoid actions that undermine China's economic resilience," Wright said.

"Beijing also does not want to behave so aggressively that other negotiations are out of reach.

"The overt harassment of foreign companies is also likely to scare European companies, and Beijing is eager to maintain good relations with China and further stimulate cooperation with China."