A sharp pullback in China's export orders shows President Trump’s eye-watering tariffs are starting to squeeze the engine room of China’s economy, piling pressure on Beijing to boost its stimulus efforts.

"You don't know whether or not China's going to eat it," Trump said of the potential for tariffs on Chinese goods to increase consumer prices.

American businesses are cancelling orders from China, postponing expansion plans and hunkering down to see what trade policy surprises President Donald Trump plans to spring on them next.