Traders were bracing for a potential escalation in the Sino-U.S. tariff row after U.S. President Donald Trump raised the stakes in the dispute on Friday.
Some background: The first tariffs on $34 billion worth of Chinese goods went into effect back in July.
Apple Inc said a "wide range" of its products including the Apple Watch would be affected by proposed US tariffs on Chinese goods but gave no sign of an impact on its iPhone.
Sedans and other small cars are falling out of favor with Americans. He threatened duties on another $267 billion of goods on top of $200 billion in imports primed for levies in coming days.Washington has long criticized China's huge trade surplus with the United States and has demanded Beijing reduce it.
Chinese production of the Focus Active will continue as planned to service the local and other foreign markets.
US economy added 201000 jobs in August, while unemployment held at 3.9%
Interestingly, the pay gains are not especially strong in areas where employers have been complaining about labor shortages. In August, the US economy added 201,000 jobs and the unemployment rate held steady at 3.9%.
Mr Trump said: "I am being strong on China because I have to be". American officials worry they might erode U.S. industrial dominance.
The proposed tariff could "cover a wide range of Apple products" and lift prices of the Apple Watch and AirPods, the company warned in a letter to the government published on Friday. It has already hiked tax on $50 billion in Chinese imports.
On top of that, strong U.S.jobs numbers on Friday had bolstered bets on a higher dollar on expectations the Federal Reserve will keep raising US interest rates. Make your products in the United States instead of China.
The auto-sector market economist Jon Gabrielsen told the Detroit Free Press that Trump's tweet was "further evidence that neither the president nor his trade representatives have any clue of the complexities of global supply chains".
They have tried to minimize the blow to China's economy by picking USA goods for which alternatives are available elsewhere, such as soybeans from Brazil, natural gas from Russian Federation or pork from Germany. But disagreements between the two major economic powers run deeper than just the trade balance and tensions remain over limits on US firms' access to Chinese markets, intellectual property protection, technology transfers, and investment.