Dow Jones falls almost 800 points amid trade war, recession fears

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The Dow Jones industrial average closed up 288 points, a gain of 1.1%.

"If it is, we will get it done", Mr Trump said in a Twitter post.

Under the sarcastic headline, "You Don't Understand Tariffs, Man", the Times highlighted the fact that Trump's impulsive attempts at economic policies have hurt farmers and manufacturers alike, as reflected in Tuesday's stock market plunge.

"When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so". White House economic advisor Larry Kudlow said the figure was a broad benchmark that would depend on private transactions for U.S. goods and was subject to market conditions. "It goes down, certainly, if it happens, it goes down as one of the largest deals ever made". They announced that China had agreed to buy many more American products and to negotiate over the administration's assertions that Beijing steals American technology.

One Chinese official said officials were "waiting for the leaders to return" before publicising details.

The move was confirmed on Monday by White House trade advisor Peter Navarro, . who called Lighthizer Washington's "toughest negotiator". Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina.

The US expects China to take immediate action to cut tariffs on US vehicle imports and end intellectual property theft and forced technology transfers as the two countries move toward a broader trade deal, Kudlow, director of the White House National Economic Council, said Monday. Senior administration officials also had trouble articulating any specifics about the deal in press briefings.

Mr. Kudlow said at an event hosted by The Wall Street Journal that he sees no recession on the horizon for the US economy. He acknowledged that Chinese leaders have stopped short of following through on deals in the past, but he said he believed the involvement of Xi in the discussions Saturday would lead to a different outcome.

In his briefing with reporters, Kudlow said he assumed that the Chinese would eventually drop their auto tariffs altogether.

China also agreed to lift tariffs, including reducing its 40-percent tariff on American cars, . which Mnuchin expects will eventually "fall to zero".

With the pause in place, . the 90-day period begins on January 1st, . with the two countries expected to continue talks throughout that period.

Chinese officials are puzzled and irritated by the administration's shaky handling of the meeting's aftermath, according to a former U.S. government official who has been in contact with them.

The unresolved trade conflict with China and slowing economic growth in Europe and Asia has raised concerns about the condition of the global economy heading into 2019.

Questioned about the agreement on Monday, Treasury Secretary Steven Mnuchin and Trump's top economic adviser, Larry Kudlow, dialed back expectations and added qualifiers. "Nobody is under any illusions".

"We don't yet have a specific agreement on that", Kudlow said, apparently contradicting Trump's tweet on the matter. Trump has not promised to lift all tariffs against Chinese goods.

It also said China had agreed to start buying farm products from USA farmers immediately.

Markets took a dive following Trump's tweetstorm.

Fears of a hotter trade war had sent financial markets tumbling in October and November.

He revisited the issue later Tuesday with a tweet that said: "We are either going to have a REAL DEAL with China, or no deal at all - at which point we will be charging major Tariffs against Chinese product being shipped into the United States". We are right now taking in $billions in Tariffs.