Equity futures were showing gains the morning after the Trump administration applied additional tariffs on $200 billion of Chinese goods.

Dow Jones futures were higher by 0.17 percent. The S&P 500 was up 0.16 percent and the Nasdaq Composite inched up 0.22%.

President Donald Trump on Monday escalated the U.S.-China trade war by announcing new tariffs on about $200 billion of Chinese imports.

The move, which had been expected since at least the weekend, imposes 10 percent tariffs on the products. The levies will climb to 25 percent beginning Jan. 1, 2019. The Trump administration also threatened to pursue additional tariffs on $267 billion worth of Chinese goods if Beijing retaliates against farmers or other U.S. industries.

The Chinese commerce ministry said in a statement that China has no choice but to retaliate, but didn’t say how.

In Asian markets, China’s Shanghai Composite waved off the tariffs to finish 1.6 percent higher.

Japan's Nikkei returned to trading following Monday’s holiday and finished the day 1.4 percent higher.

In European trading, London’s FTSE was lower by 0.13 percent, Germany’s DAX gained 0.55 percent and France’s CAC added 0.53 percent.

U.S. stocks were lower Monday in anticipation of the new tariffs.

The Dow Jones Industrial Average fell 92.55 points, or 0.35 percent, to 26,062.12. The S&P 500 was down 16.18 points, closing at 2,888.80. The Nasdaq Composite dropped 114..5 points, or 1.43 percent, to 7,895.79.

After the close of the markets, FedEx reported quarterly profit that missed Wall Street estimates on Monday, as employee compensation and other expenses weighed on results.

Earnings are due Tuesday morning from Autozone, Cracker Barrel Old Country Store and General Mills.</s>Equity futures were searching for direction after the Trump administration applied additional tariffs on $200 billion of Chinese goods.

Dow Jones futures were lower by 0.02 percent. The S&P 500 was off 0.01 percent and the Nasdaq Composite inched up 0.05%.

President Donald Trump on Monday escalated the U.S.-China trade war by announcing new tariffs on about $200 billion of Chinese imports.

The move, which had been expected since at least the weekend, imposes 10 percent tariffs on the products. The levies will climb to 25 percent beginning Jan. 1, 2019. The Trump administration also threatened to pursue additional tariffs on $267 billion worth of Chinese goods if Beijing retaliates against farmers or other U.S. industries.

The Chinese commerce ministry said in a statement that China has no choice but to retaliate, but didn’t say how.

In Asian markets, Hong Kong's Hang Seng index was down 0.7 percent.

Japan's Nikkei returned to trading following Monday’s holiday and finished the day 1.4 percent higher.

In European trading, London’s FTSE, France’s CAC and Germany’s DAX , all opened flat.

U.S. stocks were lower Monday in anticipation of the new tariffs.

The Dow Jones Industrial Average fell 92.55 points, or 0.35 percent, to 26,062.12. The S&P 500 was down 16.18 points, closing at 2,888.80. The Nasdaq Composite dropped 114..5 points, or 1.43 percent, to 7,895.79.

After the close of the markets, FedEx reported quarterly profit that missed Wall Street estimates on Monday, as employee compensation and other expenses weighed on results.

Earnings are due Tuesday morning from Autozone, Cracker Barrel Old Country Store and General Mills.</s>BEIJING — The U.S.-China trade war escalated further Tuesday, with China announcing retaliatory tax increases on $60 billion worth of U.S. imports, including coffee, honey and industrial chemicals.

The increases are in response to the U.S. announcing it will impose tariffs on $200 billion worth of Chinese-made goods starting next week. The tariffs will start at 10 per cent, then rise to 25 per cent on Jan. 1.

China’s Finance Ministry said its tariff increases are aimed at curbing “trade friction” and the “unilateralism and protectionism of the United States.”

There was no word on whether China would back out of trade talks it said it was invited to by the U.S., but a Chinese Commerce Ministry statement said the U.S. increase “brings new uncertainty to the consultations.”

The two countries have already imposed import taxes on $50 billion worth of each other’s goods. President Donald Trump threatened to add an additional $267 billion in Chinese imports to the target list if China retaliated for the latest U.S. taxes. That would raise the total affected by U.S. penalties to $517 billion, covering nearly everything China sells to the United States.

The American Chamber of Commerce in China warned Tuesday that Washington is underestimating Beijing’s determination to fight back.

“The downward spiral that we have previously warned about now seems certain to materialize,” said William Zarit, the chamber’s chairman.

At the root of the trade war are U.S. complaints about China’s plans to try to overtake U.S. technological supremacy. Those plans include “Made in China 2025,” which calls for creating powerful Chinese entities to compete in robotics and other fields. The U.S. says the plans are based on stolen technology, violate China’s market-opening commitments and might erode American industrial leadership.

American companies and trading partners including the European Union and Japan have longstanding complaints about Chinese market barriers and industrial policy. But they object to Trump’s tactics and warn the dispute could chill global economic growth and undermine international trade regulation.

Trump has strained relations with potential allies including the European Union, Canada and Mexico by raising tariffs on imported steel and aluminum. He demanded Canada and Mexico renegotiate the North American Free Trade Agreement to make it more favourable to the United States.

Trump has also complained about America’s gaping trade deficit — $336 billion last year — with China, its biggest trading partner.

“China has had many opportunities to fully address our concerns,” Trump said in a statement. “I urge China’s leaders to take swift action to end their country’s unfair trade practices.”

The trade gap means China will run out of U.S. imports to tax while the U.S. still has plenty of Chinese imports to target. But Beijing has other ways to retaliate. American companies say regulators are already starting to disrupt their operations.

Last week, the American Chambers of Commerce in China and in Shanghai reported 52 per cent of more than 430 companies that responded to a survey said they have faced slower customs clearance and increased inspections and bureaucratic procedures.

The U.S. taxes are targeting Chinese goods that Washington says have benefited from improper industrial policies. Beijing’s tariffs have hit soybeans and other farm goods from states that voted for Trump in 2016.

“Contrary to views in Washington, China can — and will — dig its heels in and we are not optimistic about the prospect for a resolution in the short term,” said Zarit of the American Chamber of Commerce. “No one will emerge victorious from this counter-productive cycle.”

In the first two rounds of tariffs, the Trump administration took care to try to spare American consumers from the direct impact of the import taxes. The tariffs focused on industrial products, not on things Americans buy at the mall or via Amazon.

By expanding the list to $200 billion of Chinese products, Trump may spread the pain to ordinary households. The administration is targeting a bewildering variety of goods — from sockeye salmon to baseball gloves to bamboo mats — forcing U.S. companies to scramble for suppliers outside China, absorb the import taxes or pass along the cost to their customers.

The U.S. government did withdraw some items from its preliminary list of imports to be taxed, including child-safety products such as bicycle helmets. And in a victory for Apple Inc., the administration removed smart watches and some other consumer electronics products.</s>The United States administration is expected to announce additional tariffs worth $200 billion on Chinese imports on Monday, September 17, according to a Reuters report.

The level of tariffs is likely to be around 10 percent which is below the 25 percent the administration was considering since last few weeks.

The $ 200 billion worth tariffs would be on series of products including internet technology products and other electronics, printed circuit boards and consumer goods including Chinese seafood, furniture and lighting products, tires, chemicals, plastics, bicycles and car seats for babies.

Highlighting the "unfair trade practices" by China, White House spokeswoman Lindsay Walters had said that Trump "has been clear that he and his administration will continue to take action to address China's unfair trade practices. We encourage China to address the long-standing concerns raised by the United States."

Ever since Donald Trump has assumed office, he has demanded China to cut its $ 375 billion trade surplus with the United States and end policies aimed at acquiring US technologies and intellectual property and also end the high-tech industrial subsidies.

Last week the world's two largest economies met each other to discuss the modalities related to trade. Treasury called on senior Chinese officials, including Vice Premier Liu He for deliberations on the matter.

Since the start of this year, US has already levied duties on $50 billion worth of Chinese goods after study on China's intellectual property practices. China has witnessed a steady fall in its current account surplus since the global economic crisis of 2008.

It remained at 1.3 percent in 2017 as against 9.9 percent in 2007 Gross Domestic Product (GDP). The Xi Jinping administration has been reducing its dependence on exports, which is the reason behind the success story of its economic might, to increase domestic consumption.

China has started to face the heat of the trade war as the economic indicators showing the effects of the sanctions. Financial markets in China have already sensed this outcome. Over the last three months, US equities have soared 7.1 percent as China's markets have lost 9.1 percent.</s>
• President Donald Trump is expected to hit China with a tariff on another $200 billion worth of Chinese goods.
• The move will be a major escalation of the US-China trade war.
• China is expected to respond with more tariffs.
• Economists expect that the tariff will increase the cost of goods for US consumers and possibly slow the broader US economy.

President Donald Trump is expected to order the US Trade Representative to impose a tariff on $200 billion worth of Chinese goods, catapulting the US-China trade war to the next level.

During a White House meeting on Monday, Trump said an announcement on the tariffs would come after the stock market close. According to reports, the tariffs will apply a 10% duty to a slew of goods, ranging from food to furniture.

The latest tariffs, along with previous rounds on $50 billion of Chinese goods and metal imports, will mean over half of all Chinese goods coming into the US are subject to the duties.

"It will be a lot of money coming into the coffers of the United States of America," Trump said.

China's Ministry of Commerce has promised to respond to Trump's latest attack with tariffs on $60 billion worth of US goods. This means that between 85% and 95% of American imports coming into China will be subject to a tariff from the trade war.

The move willy also solidify Trump's commitment to to the trade war despite the Treasury Department's recent overtures to Beijing. China will reportedly decline further talks if Trump goes through with the tariffs on Monday.

The president also threatened to slap tariffs on another $267 billion worth of Chinese goods, which would mean all imports from China would be subject to duties.

In addition to being much larger than previous rounds of tariffs, the new set zeroes in on different targets. The first round of tariffs on $50 billion worth of Chinese goods focused almost exclusively on industrial goods, but Friday's tariffs also include a large amount of consumer goods.

Economists estimate the tariffs will prompt an increase in prices for both US businesses and consumers. That could slow spending on large investments and consumer purchases, potentially harming the broader economy.

Stocks also declined on Trump's pre-announcement statement with the Dow Jones industrial average falling 91 points, or 0.35%, as of 3:45 pm ET.

Here's a timeline of the US-China trade war so far:
• March 1: President Donald Trump announces tariffs on all imports of steel and aluminum, including metals from China.
• March 22: Trump announces plans to impose a 25% tariff on $50 billion worth of Chinese goods. China announces tariffs in retaliation to the steel and aluminum duties and promises a response to the latest US announcement.
• April 3: The US trade representative announces a list of Chinese goods subject to the tariffs. There is a mandatory 60-day comment period for industries to ask for exemptions from the tariffs.
• April 4: China rolls out a list of more than 100 US goods worth roughly $50 billion that are subject to retaliatory tariffs.
• May 21: After a meeting, the two countries announce the outline of a trade deal to avoid the tariffs.
• May 29: The White House announces that the tariffs on $50 billion of Chinese goods will move forward, with the final list of goods released June 15. The move appears to wreck the nascent trade deal.
• June 15: Trump rolls out the final list of goods subject to new tariffs. Chinese imports worth $34 billion would be subject to the new 25% tariff as of July 6, with another $16 billion worth of imports subject to the tariff at a later date. China retaliates with an equivalent set of tariffs.
• June 18: Trump threatens a 10% tariff on another $200 billion worth of Chinese goods.
• July 6: The first tranche of tariffs on $34 billion worth of Chinese goods takes effect; China responds in kind.
• July 10: The US releases an initial list of an additional $200 billion worth of Chinese goods that could be subject to a 10% tariff.
• August 1: Washington more than doubles the value of its tariff threats against Beijing, announcing plans to increase the size of proposed duties on $200 billion worth of Chinese goods to 25% from 10%.
• August 3: China says it will impose tariffs of various rates on another $60 billion worth of US goods if Trump moves forward with his latest threat.
• August 7: The US announces that the second tranche of tariffs, which will hit $16 billion worth of Chinese goods, will go into effect on August 23.
• August 23: The US imposes tariffs on another $16 billion worth of Chinese goods, and Beijing responds with tariffs on $16 billion worth of US goods.
• September 7: Trump says the $200 billion tranche of tariffs is coming "soon" and threatens to impose tariffs on another $267 billion worth of Chinese goods.</s>The Latest on the Trump administration imposing tariffs on $200 billion more in Chinese goods (all times local):

Several business groups swiftly have condemned President Donald Trump's plans to impose tariffs on another $200 billion in Chinese imports.

U.S. Chamber of Commerce President Thomas Donohue said, "The U.S. economy runs on pro-growth policies, but that's not what tariffs on $200 billion worth of Chinese goods deliver."

The Retail Industry Leaders Association called the tariffs a tax on American families. In a statement the group said, "Consumers — not China — will bear the brunt of these tariffs."

Likewise, the National Association of Manufacturers said the tariffs risk offsetting the benefits of last year's tax cuts and urged the administration to resume negotiations with China. The association's president, Jay Timmons, said in a statement that, "Now is the time for talks — not just tariffs."

Apple and other technology companies avoided a financial threat to the popularity of smartwatches and other wireless devices by persuading President Donald Trump to spare those products from tariffs levied on $200 billion in Chinese goods.

Trump's concession comes after Apple sent a Sept. 5 letter to the U.S. Trade Representative urging the administration to shield its smartwatch and wireless headphones, which contain parts from Chinese suppliers, from the tariffs.

Apple has particularly big plans for its smartwatch as it tries to transform it from a niche gadget into a medical device capable of taking high-quality heart readings and detecting falls.

Other tech companies also stand to benefit, particularly Amazon and Google, which have been trying to hold down the prices of their internet-connected speakers as part of an effort to get the devices into more U.S. households.

Experts say the Trump administration's move to slap tariffs on $200 billion more in Chinese goods will only have a modest impact on the U.S. economy, but it represents a setback to hopes the trade dispute was cooling.

Paul Ashworth, chief U.S. economist at Capital Economics, estimates retailers could eat some of the higher cost, limiting price increases to U.S. consumers. And certain items imported from China could instead be purchased from other countries or manufactured in the U.S.

He also noted that U.S. exports to China make up slightly less than 1 percent of U.S. output, which would limit the broader economic impact of any retaliatory tariffs by China on U.S. goods.

JJ Kinahan, chief market strategist for TD Ameritrade, says technology companies seem especially vulnerable to retaliation from the Chinese government, which could include tariffs on components as well as restricting access to websites and services. But he said the new tariffs won't completely foreclose the possibility of talks between the two sides.

The Trump administration is imposing tariffs on $200 billion more in Chinese goods starting next week, escalating a trade war between the world's two biggest economies and raising prices on consumer goods ranging from handbags to bicycle tires.

The tariffs will start at 10 percent and rise to 25 percent starting Jan. 1.

President Donald Trump decided to begin taxing the imports — equal to nearly 40 percent of goods China sold the United States last year — after a public comment period. China has said it's ready to impose retaliatory tariffs on U.S. goods.

The U.S. had already imposed tariffs on $50 billion in Chinese imports.

Trump initiated the fight to punish Beijing for what he says are China's predatory tactics to try to supplant U.S. technological supremacy.</s>WASHINGTON/TIANJIN, Sept 18 (Reuters) - U.S. President Donald Trump escalated his trade war with Beijing, imposing 10 percent tariffs on about $200 billion worth of imports in a move one senior Chinese regulator said "poisoned" the atmosphere for negotiations.

Trump also warned in a statement on Monday that if China takes retaliatory action against U.S. farmers or industries, "we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports."

China is reviewing plans to send a delegation to Washington for fresh talks in light of the U.S. decision, the South China Morning Post reported on Tuesday, citing a government source in Beijing, raising the risk of a prolonged trade battle between the world's largest economies that could hit global growth.

U.S. trade actions against China will not work as China has ample fiscal and monetary policy tools to cope with the impact, a senior securities market official said.

"President Trump is a hard-hitting businessman, and he tries to put pressure on China so he can get concessions from our negotiations. I think that kind of tactic is not going to work with China," Fang Xinghai, vice chairman of China's securities regulator, said at a conference in the port city of Tianjin.

Collection of tariffs on the long-anticipated list will start on Sept. 24 but the rate will increase to 25 percent by the end of 2018, allowing U.S. companies some time to adjust their supply chains to alternate countries.

So far, the United States has imposed tariffs on $50 billion worth of Chinese products to pressure Beijing to make sweeping changes to its trade, technology transfer and high-tech industrial subsidy policies. China has retaliated in kind.

Vice Premier Liu He was set to convene a meeting in Beijing on Tuesday morning to discuss the government's response, Bloomberg News reported, citing a person briefed on the matter.

China has vowed to retaliate against new U.S. tariffs, with state-run media arguing for an aggressive "counterattack."

Last month, it unveiled a proposed list of tariffs on $60 billion of U.S. goods ranging from liquefied natural gas to certain types of aircraft - should Washington activate the tariffs on its $200 billion list.

The effect of the 10 percent tariffs will gradually show up in China's fourth-quarter data, and the full impact of the total 25 percent tariffs is expected to be felt next year, dragging down China's gross domestic product (GDP) growth rate by 0.83 percentage point, Citi analysts wrote in a note.

Fang said that even if Trump puts tariffs on all Chinese exports to the United States, the negative impact on China's economy will be about 0.7 percent. He did not say whether he was referring to the impact on the amount of GDP or the GDP growth.

Trump's latest escalation of tariffs on China comes after several meetings yielded no progress. U.S. Treasury Secretary Steven Mnuchin last week invited top Chinese officials to a new round of talks, but thus far nothing has been scheduled.

"We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly," Trump said in his statement. "But, so far, China has been unwilling to change its practices."

Fang told the Tianjin forum that he hopes the two sides can sit down and talk, but added that the latest U.S. move has "poisoned" the atmosphere.

A senior Trump administration official told reporters that the United States was open to further talks with Beijing, but offered no immediate details on when they may occur.

"This is not an effort to constrain China, but this is an effort to work with China and say, 'It's time you address these unfair trade practices that we've identified that others have identified and that have harmed the entire trading system,'" the official said.

So far, China has either imposed or proposed tariffs on $110 billion of U.S. goods, representing most of its imports of American products.

"Tensions in the global economic system have manifested themselves in the U.S.-China trade war, which is now seriously disrupting global supply chains," the European Union Chamber of Commerce in China said in a statement on Tuesday.

China's yuan currency slipped 0.3 percent against the U.S. dollar in Asian trade on Tuesday. It has weakened by about 6.0 percent since mid-June, offsetting the 10 percent tariff rate by a considerable margin.

The latest U.S. move spared smart watches from Apple and Fitbit and other consumer products such as baby car seats. But if the administration enacts the additional tariffs on $267 billion in goods, it would engulf all remaining U.S. imports from China and Apple products like the iPhone and its competitors would not likely be spared.

The U.S. Trade Representative's office eliminated 297 product categories from the proposed tariff list, along with some subsets of other categories.

But the adjustments did little to appease technology and retail groups who argued U.S. consumers would feel the pain.

"President Trump´s decision...is reckless and will create lasting harm to communities across the country," said Dean Garfield, president of the Information Technology Industry Council, which represents major tech firms.

"Tariffs are a tax on American families, period," said Hun Quach," RILA's vice president for international trade.

"Consumers - not China - will bear the brunt of these tariffs and American farmers and ranchers will see the harmful effects of retaliation worsen."

Kenneth Jarrett, president of the American Chamber of Commerce in Shanghai, said three quarters of its members will be hit by the tariffs, and they will not bring jobs back to the United States.

"Most of our member companies are 'in China, for China' - selling goods to Chinese companies and consumers, not to Americans - and thus ultimately boosting the U.S. economy," Jarrett said. (Reporting by Steve Holland, David Lawder, Ginger Gibson, Eric Beech and David Shepardson; Additional reporting by Kevin Yao in TIANJIN, John Ruwitch in SHANGHAI and Michael Martina and Ryan Woo in BEIJING; Editing by Clive McKeef and Kim Coghill)</s>US President Donald Trump escalated his trade war rhetoric on Monday, threatening unspecified countries with tariffs is they "will not make fair deals with us."

The US is currently engaged in a trade war with China and is expected to levy new tariffs on $200 billion worth of Chinese imports on Monday, on top of the $50 billion of tariffs in place.

Many US businesses have warned that the new rounds of tariffs threaten to increase prices of everyday goods for Americans— everything from baby seats to bikes.

Trump defended his policies in an early morning Tweet on Monday, writing: "Tariffs have put the U.S. in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country - and yet cost increases have thus far been almost unnoticeable. If countries will not make fair deals with us, they will be "Tariffed!""

He followed that tweet up with another one a few minutes later that said: "Our Steel Industry is the talk of the World. It has been given new life, and is thriving. Billions of Dollars is being spent on new plants all around the country!"

The statements come as relations between the US and China appear to strain. There had been hopes of a resolution on trade between the two but news of the planned fresh US tariffs have sparked anger in Beijing.

China is reportedly threatening to pull out of trade negotiations if the US levies new tariffs and the Foreign Ministry said on Monday it would respond in kind if the US levies fresh tariffs.

Chinese tabloid the Global Times, which is owned by the state, said in an editorial on Monday: "We are looking forward to a more beautiful counter-attack and will keep increasing the pain felt by the U.S."</s>Commerce Secretary Wilbur Ross said Tuesday that new U.S. tariffs on China are aimed at modifying Beijing's behavior and leveling the playing field for American companies competing there.

Ross appeared on CNBC the morning after the Trump administration announced that President Donald Trump will impose 10 percent tariffs on $200 billion worth of Chinese imports, with those duties rising to 25 percent at the end of the year.

China is "out of bullets" to retaliate because its imports to the U.S. are nearly four times larger than the U.S. exports to China, Ross said on "Squawk Box."

Last month, China unveiled a response list of tariffs on $60 billion of U.S. goods ranging from liquefied natural gas to certain types of aircraft.

"If China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports," Trump said in a statement.

If "phase three" were to be implemented, on top of Monday's announced $200 billion in tariffs and the $50 billion already in place, all Chinese imports would be affected.

According to federal data, the U.S. imported more than $505 billion worth of goods from China last year.

The White House on Monday did remove about 300 goods from a previously proposed list of affected products, including smart watches, some chemicals, bicycle helmets and high chairs.

The tariffs are not "shot from the hip," Ross told CNBC. He said he sees only a minimal impact on inflation from price hikes as a result of the trade measures. Trump is trying to pressure China for productive talks, Ross added.

China is reviewing plans to send a delegation to Washington for trade talks, the South China Morning Post reported on Tuesday, citing a government source in Beijing.

— CNBC's Jacob Pramuk and Reuters contributed to this report.</s>With investors already nervous about the prospect of President Trump slapping the next round of tariffs on Chinese goods as soon as Monday (US stock futures, which have so far internalized these trade tensions with surprising equanimity, were down slightly in early trade), President Trump boasted on Twitter that his trade war has produced only positive results, including boosting jobs and revenues while "cost increases" have been negligible (even though we could name more than a few CEOs who would beg to differ).

According to Trump, "tariffs have put the U.S. in a very strong bargaining position, with Billions of Dollars, and Jobs, flowing into our Country - and yet cost increases have thus far been almost unnoticeable. If countries will not make fair deals with us, they will be 'Tariffed!'"

Dow future crept lower following Trump's latest tweetstorm, which also featured rants about Obama's ineffectual economic policies...

...While the president asserted that the US steel industry is already benefiting from Trump's tariffs on aluminum and steel.

Remember, as President Trump prepares to slap tariffs on another $200 billion in Chinese goods entering the US (tariffs that, as Deutsche Bank recently pointed out, will likely have a material impact on US supply chains and consumers, particularly when China retaliates)...

...This will become the most important chart in the world as President Trump has repeatedly cited the divergence of US stocks from ex-US as evidence that he is winning the trade war.

And as a reminder, here's a handy timeline of the trade dispute.
The United States announces a 10% tariff on $200 billion worth of Chinese goods to start on September 24, increasing to 25% by the end of the year, and threatens tariffs on an additional $267 billion worth of imports if China retaliates.