President Donald Trump on Monday complained yet again about 鈥淪TUPID TRADE鈥� with China, doing little to calm investors anxious about the escalating trade conflict between the two economic superpowers.

In a tweet on Monday morning Trump said that when a Chinese-made vehicle is sent to the U.S., the tariff is only 2.5 per cent, while American cars exported to China are slapped with a 25 per cent tariff.

Trump asked, 鈥淒oes that sound like free or fair trade.鈥� Then answered, 鈥淣o, it sounds like STUPID TRADE.鈥�

When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%. When a car is sent to China from the United States, there is a Tariff to be paid of 25%. Does that sound like free or fair trade. No, it sounds like STUPID TRADE - going on for years!

鈥� Donald J. Trump (@realDonaldTrump)

China charges total duties of 25 per cent on most imported cars 鈥� a 10 per cent customs tariff plus a 15 per cent auto tax. Since December 2016, Beijing also has charged an additional 10 per cent on 鈥渟uper-luxury鈥� vehicles priced above 1.3 million yuan ($200,000).

Trump鈥檚 top economic advisers have offered mixed messages as to the best approach with China. Beijing has threatened to retaliate if Washington follows through with its proposed tariffs, even as Trump emphasized his bond with Chinese President Xi Jinping.

鈥淧resident Xi and I will always be friends, no matter what happens with our dispute on trade,鈥� Trump tweeted Sunday. 鈥淐hina will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property. Great future for both countries!鈥�

But Trump did not explain why, amid a week of economic saber-rattling between the two countries that shook global markets, he felt confident a deal could be made.

The president made fixing the trade imbalance with China a centerpiece of his presidential campaign, where he frequently used incendiary language to describe how Beijing would 鈥渞ape鈥� the U.S. economically. But even as Trump cozied up to Xi and pressed China for help with derailing North Korea鈥檚 nuclear ambitions, he has ratcheted up the economic pressure and threatened tariffs, a move opposed by many fellow Republicans.

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The Trump administration has said it is taking action as a crackdown on China鈥檚 theft of U.S. intellectual property. The U.S. bought more than $500 billion in goods from China last year and now is planning or considering penalties on some $150 billion of those imports. The U.S. sold about $130 billion in goods to China in 2017 and faces a potentially devastating hit to its market there if China responds in kind.

China has pledged to 鈥渃ounterattack with great strength鈥� if Trump decides to follow through on his latest threat to impose tariffs on an additional $100 billion in Chinese goods 鈥� after an earlier announcement that targeted $50 billion. Beijing also declared that the current rhetoric made negotiations impossible, even as the White House suggested that the tariff talk was a way to spur China to the bargaining table.

The new White House economic adviser, Larry Kudlow, said Sunday that a 鈥渃oalition of the willing鈥� 鈥� including Canada, much of Europe and Australia 鈥� was being formed to pressure China and that the U.S. would demand that the World Trade Organization, an arbiter of trade disputes, be stricter on Beijing. And he said that although the U.S. hoped to avoid taking action, Trump 鈥渨as not bluffing.鈥�

鈥淭his is a problem caused by China, not a problem caused by President Trump,鈥� Kudlow said on 鈥淔ox 亚洲天堂 Sunday.鈥�

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But he also downplayed the tariff threat as 鈥減art of the process,鈥� suggesting on CNN that the impact would be 鈥渂enign鈥� and said he was hopeful that China would enter negotiations. Kudlow, who started his job a week ago after his predecessor, Gary Cohn, quit over the tariff plan, brushed aside the possibility of economic repercussions.

鈥淚 don鈥檛 think there鈥檚 any trade war in sight,鈥� Kudlow told Fox.

Treasury Secretary Steve Mnuchin said on CBS鈥� 鈥淔ace the Nation鈥� that he didn鈥檛 expect the tariffs to have a 鈥渕eaningful impact on the economy鈥� even as he left the door open for disruption. He allowed that there 鈥渃ould be鈥� a trade war but said he didn鈥檛 anticipate one.

Another top White House economic adviser, Peter Navarro, took a tougher tack, declaring that China鈥檚 behaviour was 鈥渁 wakeup call to Americans.鈥�

鈥淭hey are in competition with us over economic prosperity and national defence,鈥� Navarro said on NBC鈥檚 鈥淢eet the Press.鈥� 鈥滶very day of the week China comes into our homes, our business and our government agencies. 鈥� This country is losing its strength even as China has grown its economy.鈥�

Trump鈥檚 latest proposal intensified what was already shaping up to be the biggest trade battle in more than a half century.

Trump told advisers last week that he was unhappy with China鈥檚 decision to tax $50 billion in American products, including soybeans and small aircraft, in response to a U.S. move to impose tariffs on $50 billion in Chinese goods. Rather than waiting weeks for the U.S. tariffs to be implemented, Trump backed a plan by Robert Lighthizer, his trade representative, to seek the enhanced tariffs.

The rising economic tensions pose a test to what has become Trump鈥檚 frequent dual-track foreign policy strategy: to establish close personal ties with another head of state even as his administration takes a harder line. The president has long talked up his friendship with Xi, whom he has praised for consolidating power in China despite its limits on democratic reforms.

Further escalation could be in the offing. The U.S. Treasury Department is working on plans to restrict Chinese technology investments in the U.S. And there is talk that the U.S. could also put limits on visas for Chinese who want to visit or study in this country.

For Trump, the dispute runs the risk of blunting the economic benefits of his tax overhaul, which is at the centre of congressional Republicans鈥� case for voters to keep them in power in the 2018 elections. China鈥檚 retaliation so far has targeted Midwest farmers, many of whom were bedrock Trump supporters.

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Associated Press writers Hope Yen and Thomas Strong contributed to this report.

Jonathan Lemire, The Associated Press

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