Trump told reporters Friday that his administration was days away from imposing a new round of tariffs on imports worth $200 billion, and that it could follow up with another round of tariffs on goods worth an additional $267 billion. "And the US$200 billion we're talking about could take place very soon, depending on what happens with them". "I hate to do this, but behind that there is another $267 billion ready to go on short notice if I want". "That totally changes the equation".
The $200 billion list, which includes some consumer products such as cameras and recording devices, luggage, handbags, tires and vacuum cleaners, would be subject to tariffs of 10 percent to 25 percent.
The Trump administration is ready to move ahead with the next round of tariffs after a public comment period ends at midnight in Washington on September 11, but the timing is uncertain, people familiar with the administration's plans told Reuters.
"China, right now, is a far bigger problem", Trump said.
"Even though footwear is not on the third list proposed by the Trump administration, many other consumer goods and production machinery is at risk, driving up prices for all American consumers", said Matt Priest, president and CEO of the Footwear Distributors and Retailers of America.
In its filing, Apple challenged that approach, writing that "it is hard to see how tariffs that hurt USA companies and US consumers will advance the Government's objectives with respect to China's technology policies".
Away from trade developments and emerging market turmoil, attention will be directed towards the U.S.jobs report coming out later today which will offer fresh insight into the health of the USA employment sector.
Intel's letter goes further and warns that the tariffs will impact all consumer electronics, including smartphones, laptops and desktop PCs. Chinese leaders scrapped that deal after Trump's first tariff hikes hit. "Now we've added another $200bn".
While China's response to USA demands has been unsatisfactory, Trump is still speaking to Xi, and would be open to meeting in person, said Kudlow, director of the White House's National Economic Council. Referring to his suggestion as "exciting", the president said that Apple should start building new factories in America.
The Dow, the S&P 500 and the Nasdaq Composite fell slightly after the news, despite strong USA job numbers announced earlier on Friday.