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The trade war between China and the United States has escalated sharply in recent days, as the United States on Monday listed China as a currency manipulator for the first time since 1994 and said it would impose a 10% tariff on the remaining $300 billion of Chinese imports from September 1.
These measures shocked financial markets and raised concerns about the global recession.
The yield on U.S. Treasury bonds fell sharply Wednesday, with 30-year yields near record lows as concerns about the global economic downturn intensified and markets bet that the Federal Reserve will have to cut interest rates further to cope with the risk of recession.
Trump told reporters at the White House that the market reaction was expected, but he remained confident about the economic strength of the United States.
"Ultimately, the U.S. economy will grow much faster than ever, because China is like an anchor hanging on us. China is killing us with unfair trade deals, "he said.
White House officials say they still expect Chinese negotiators to come to Washington in September for talks, and the latest tariffs could still be avoided if the world's two largest economies make progress on a trade agreement.
But hopes of reaching an agreement are fading. Goldman Sachs said Tuesday that it expects no agreement between the two countries before the November 2020 presidential election, given the "tougher line" pursued by both the United States and China.

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