But late Monday, President Trump requested that the U.S. Trade Representative put together a list of $200 billion worth of imports from China that a 10% tariff could be imposed on, a move that China has called "Blackmail" on the part of the Trump administration. (Seipi), the largest organization of foreign and Filipino electronics companies in the Philippines, concedes that the country's $33-billion electronics exports, which yearly account for at least half of outbound goods, would be severely affected by a US-China trade war.
Mr Trump recently ordered tariffs on 50 billion dollars in Chinese goods in retaliation for intellectual properly theft.
The tariffs were quickly matched by China on US exports, a move that drew the president's ire.
The Dow Industrials and S&P 500 fell more than a percent, but the losses in Asia were more severe.More news: Trump promises more China tariffs
While chips were largely spared from the initial list of targeted goods released in April, U.S. trade officials on Friday released a second tariff list of 284 products worth $16 billion that includes the processor and memory chips at the heart of Intel´s business. Boeing's stock shed 4.3 percent, Caterpillar 3.7 percent, and GE 2.1 percent. "Further action must be taken to encourage China to change its unfair practices, open its market to United States goods and accept a more balanced trade relationship with the United States", Trump said in a statement.
"This practice of extreme pressure and blackmail deviates from the consensus reached by both parties on many occasions and is disappointing for the global community", the Commerce Ministry said in a statement. "If the U.S. acts irrationally and issues a list, China will have no choice but to take comprehensive measures of a corresponding number and quality and take strong, powerful countermeasures". Beijing in turn warned about $50 billion of retaliatory penalties on U.S. goods.
It said the Chinese government is trying to find out whether Trump has the "political strength" to carry out his threats and is pressuring US interests to force him to compromise. China responded with levies valued at an equal amount on American-made imports. While the full effect may not be felt until after the mid-term elections, it is predicted to have a very large negative effect with hundreds of thousands of jobs lost in US agriculture and services.More news: Senegal tops Poland amid controversy for first African win
USA -listed shares of Chinese companies tumbled, with e-commerce giant Alibaba down 3.3 percent and JD.com off 5.7 percent. Combined, the potential tariffs on Beijing could cover $450 billion - a sum equal to 89 percent of Chinese goods imported to the United States past year. Additionally, the United States president could be thinking that China will soon run out of U.S. imports. Oxford Economics estimates that if Trump imposed the $200 billion in duties and China responded in kind, US growth could slow by 0.3 percentage point next year.
Wall Street has viewed the trade tensions with rising concern that they could strangle the economic growth achieved during Trump's watch.
However, there is a potential risk for Mr. Trump because Republicans who believe in the free trade do not think that this is the best way of handling problems with China. But the rhetoric is intensifying after several rounds of high-level trade talks that White House economic adviser Peter Navarro said yielded no progress.More news: Robert Pires backs Yacine Adli to be a success in London