The US-China trade war showed no signs of deescalation as President Donald Trump threatened to slap Chinese goods with even more tax.
In an angry tweet on Friday, Trump, who appears to be losing his patience with China, said that Chinese goods currently subject to 25% tax would be subjected to 30% tax as from October 1, 2019.
He explained that he had opted to take the move as a response to China subjecting 75 billion dollars worth of US goods to more tariffs, branding China's move politically motivated.
“China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!),” Trump tweeted.
“Starting on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30%."
Trump called on American companies to end their relationship with China, saying that the US could do without China.
His intervention sent jitters through the stock market.
The Washington Post reported that the Dow Jones Industrial Average dropped by 600 points as members of the business community expressed fears that Trump's dramatic move might harm investor confidence.
President Trump justified the move, citing billions of dollars that he claimed the US was losing to the Chinese.
The business community has urged a more amicable resolution to the outstanding issues.