Also Monday, Wisconsin's Harley-Davidson tumbled more than 6% after saying it would move some production out of the USA amid retaliatory tariffs the company said would bring about a "tremendous cost increase".
Proposed restrictions on foreign investment in U.S. technology would not just be confined to China, according to U.S. Treasury Secretary Steven Mnuchin.
The original WSJ story was titled: Trump Plans New Curbs on Chinese Investment, Tech Exports to China.
"The only thing that's going to happen in the near term is on Friday the Treasury secretary is going to report to the president on the issue related to China". Last week, Chinese President Xi Jinping told a group of American and European multinational chief executives that his country was planning to strike back against the latest trade actions by the USA, according to the Wall Street Journal. "With respect to other countries, there's absolutely nothing on the table".
Last Monday, President Donald Trump said he asked the U.S. trade representative to identify an additional $200 billion worth of Chinese goods for a 10 per cent tariff. As well, USA motorcycle maker Harley-Davidson said on Monday that it would move some production overseas to avoid European tariffs, potentially affecting U.S.jobs.
Many investors viewed this as a broadening of the Trump administration's trade disputes, reaching beyond China to include Europe and Japan.
It also said it would unveil a revised list of Chinese goods for tariffs, which it did on June 15.
Europe and China will form a group aimed at updating global trade rules to address technology policy, government subsidies and other emerging complaints in a bid to preserve support for worldwide commerce, the vice president of the European Union's governing body said Monday. "Trade must be fair and no longer a one way street!"
But trade policy advisor Navarro, the administration's harshest China critic, has advocated a far more confrontational approach with Beijing.
Both China and the European Union have recently come under pressure from Trump on trade.
"The market is perceiving that politics will become policy", said Brian Battle of Performance Trust Capital Partners in Chicago. Trump administration officials have said they are considering the use of the 1977 International Emergency Economic Powers Act to impose new restrictions on China, an act widely used to freeze assets after the 9/11 attacks in 2001.
The White House, Treasury Department and Commerce Department did not immediately reply to requests for comment.