The US president claims there has been a "total reset" in trade relations following a day of talks between the nations.

Trump’s escalation sent financial markets tumbling and left U.S. retailers warning that they might run out of goods as U.S.-China trade implodes. U.S. consumers, worried about the prospect of empty shelves and higher prices, are losing confidence in the economy.

Trump has been railing against what he saw as America's bad standing in global trade since long before he entered politics. In a 1987 open letter published as a full-page ad in major U.S. newspapers, he accused wealthy U.S. allies of freeloading off American military protection while running trade surpluses at the expense of the United States.