US President Donald Trump said he could impose 10% tariffs on Chinese goods from February 1. China's stock markets fell after Trump's comments, breaking several straight days of gains. Trump had said he could slap tariffs of 25% on Canada and Mexico from February 1.

BEIJING – China vowed on Jan 22 to defend its “national interests” against tariff threats from US President Donald Trump, who warned he could impose a 10 per cent duty on imports from the country by the end of next week.

The US president said he was going to target the European Union and China with increased tariffs on Tuesday. China and Europe said they were ready to negotiate with Trump, warning they would 'protect' their interests.

Markets were cautiously optmistic after Trump took a lighter approach to China on Monday. That sentiment lasted a day.

On the campaign trail, Mr Trump promised a 10 per cent to 20 per cent charge on all imported goods and 60 per cent on Chinese products. He also vowed a 25 per cent tariff on all products from Canada and Mexico, and an additional 10 per cent duty on Chinese goods.

President Donald Trump widened his tariff threats to include China and the European Union on his second day back in office after day one saw Canada and Mexico in his sights.

President Donald Trump told reporters hours after taking office that he was considering levying a blanket duty on Mexico and Canada on Feb. 1.