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

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.

China on Wednesday responded to US President Donald Trump's tariff threats and Beijing was ready to "national interests" in the trade war. Mr Trump has warned he could impose a 10 per cent duty on imports from China by the end of next week.

Most Asian markets extended a global rally Wednesday as investors gave a cautious welcome to Donald Trump's first full day in office amid hopes he will take a more cautious approach on trade than initially feared.

Donald Trump threatened 25% tariffs on Mexico and Canada on his very first day in office, and suggested duties on China might depend on whether Beijing sells a stake in TikTok. Russ Mould of AJ Bell told Reuters equity markets are hoping that's just a bargaining position - and trade partners will be able to strike a deal with Trump.

President Donald Trump held off unveiling China-specific tariffs on his first day in office, instead ordering his administration to address unfair trade practices globally and investigate whether Beijing had complied with a deal signed during his first term.

US President Donald Trump stated that he was considering imposing a 10 per cent tariff on all imports from China