Global markets had started the week on a high, fuelled by hopes for a new Canada-US-Mexico trade pact and easing Brexit fears "One thing's for sure - Sino-US trade developments are destined to be the defining feature of September's markets", said Ray Attrill, head of foreign-exchange strategy at the National Australia Bank. Trump's latest comments come ahead of a summit between Trump and Chinese President Xi Jinping in November, with some observers saying they are part of a strategy by the tycoon to win concessions.
Trump's remarks ignited more dollar buying. It could change. The whole situation could change. It is a big difference in 1½ years.
Trump on Wednesday accused China of pressuring North Korea not to bend in nuclear negotiations with the US. He reimposed sanctions on Iran last month.
I don't think they can impeach somebody that is doing a great job. You look at trade deals.
Some of the people cautioned that Trump hasn't made his final decision, and it's possible the administration may enact the duties in instalments.
President Donald Trump has imposed additional tariffs on $50 billion of Chinese imports and identified another $200 billion in goods targeted for duties of as much as 25 percent, ranging from chemicals and seafood to vacuums and bicycles.More news: Man opens fire on crowd, shot by police outside Ice Cube concert
"The U.S.is now threatening China that it will levy additional tariffs on Chinese products, and China stands ready to strongly respond till the end to the U.S. offensive", it added. The next stage of tariffs on $16 billion of goods took hold in August.
"So-called hardline, pressure-exerting methods of the US side won't work on China and are not helpful to resolving the problem", Chinese foreign ministry spokeswoman Hua Chunying said on Friday when asked about the report.
Putting him in charge of China talks, were it to happen, "at least opens the door to a serious negotiation with China which we have not seen yet", Mr Alden added.
China has threatened to retaliate with tariffs on $60 billion in goods from the US and could take other measures as well. Trump administration officials have been divided over how hard to push Beijing.
Mr Trump's plan to bring down his biggest hit yet on China comes as two-way trade talks show little signs of progress.
The dollar climbed for a second straight session on Friday as investors sought the safety of the USA currency after reports that the United States and Canada ended trade negotiations without any deal.