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.

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.

Chinese policymakers on Monday sought to assuage concerns the broad U.S. tariffs could derail efforts to shore up a fragile economic recovery, even as analysts warn the hefty levies raise the risk of a sharp downturn in growth.