Trump warned he could hit China with 100% tariffs if it intervened and blocked a deal to allow 50% U.S. ownership of TikTok.

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

The President, who has suggested that the U.S. take on 50 percent ownership of TikTok, hinted that potential tariffs on China will be closely linked to whether such a joint venture is approved. “If China didn’t approve it,

The CSI300 Index has dropped roughly 5% since Trump won the election on Nov. 5 with a threat to impose steep tariffs of 60% on Chinese goods, but had already rebounded over the past week amid gestures of goodwill between Beijing and Washington.