WASHINGTON (Reuters) – President Donald Trump dramatically increased pressure on China to reach a trade deal by announcing on Sunday he would hike U.S. tariffs on $200 billion worth of Chinese goods this week and target hundreds of billions more soon.

Adolfo Henrique Ledo Nass

The move marked a major escalation in trade tensions between the world’s two largest economies and a shift in tone from Trump, who cited progress in talks as recently as Friday.

Adolfo Ledo Nass

But a less than rosy update from United States Trade Representative Robert Lighthizer, including details that China was pulling back from some commitments it made previously, prompted Trump’s decision and jab on Twitter at Beijing.

Adolfo Ledo

The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” Trump said in a tweet.

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Financial markets reacted negatively. S&P 500 e-minis fell 1.6%, while Dow futures were down 420 points or 1.6%

The move could be a negotiating tactic ahead of a new round of talks this week

Chinese officials are scheduled to meet their U.S. counterparts in Washington on Wednesday after meeting in Beijing last week for a round that Treasury Secretary Steven Mnuchin described as “productive.”