Approximately one-third of US soybeans are exported to China, which makes the market especially susceptible to trade disputes.
In an appearance before the Economic Club of Chicago, Powell says the issue was discussed at the Fed's March meeting.
"Up to now, Chinese and United States officials have not held any negotiations on the trade dispute", foreign ministry spokesman Geng Shuang told reporters during a regular press briefing.
Vowing to shield USA farmers from Chinese retaliation, Mr Trump said on Monday: "If, during the course of a negotiation, they want to hit the farmers because they think that hits me, I wouldn't say that's nice".
Mnuchin tells CNBC, "We're absolutely willing to negotiate".
"This is a problem caused by China, not a problem caused by President Trump", Kudlow said on "Fox News Sunday".
"President Xi has ignited a rally in risk assets that might have some legs if the USA can keep a lid on the protectionist rhetoric for a while. Avoiding a trade war will benefit all countries", Musk tweeted after Xi's speech. But the rise of the massive production abilities of the Chinese over the past two decades has turned China into a threat to American interests rather than just a trading partner.
Investors across the globe are bracing for uncertain markets over an escalating trade dispute between the US and China. On Monday, he described China's behaviour not as free or fair trade, but "stupid trade". "The market appears positive, hopeful that the dispute can be solved through negotiations". China sees itself as a great power and a strong one, and a manifestation of this ambition is its "zone of influence" in South Asia.
China stepped up its attacks on the Trump administration on Monday over billions of dollars worth of threatened tariffs, but US President Donald Trump again voiced optimism the two sides would hammer out a trade deal.
On Monday in Beijing, China's foreign ministry warned that trade talks with the United States were "impossible" under current conditions.
Trump has recently made conciliatory comments about China's President Xi Jinping, suggesting the two are "good friends", but Washington and Beijing have yet to announce any new talks addressing outstanding trade and investment issues.
Gao gave no details of what measures Beijing might take. Last year, he countered Trump's "America First" campaign promises in a speech at the World Economic Forum in Davos, Switzerland, where he compared protectionism to "locking yourself in a dark room". He tweets, "People are surprised, I'm not!" A 2017 analysis by the European Centre for International Political Economy determined that import tariffs on pharmaceuticals have the highest compounded financial burden on consumer prices in China-up to $6.2 billion annually.
Russian assets extended Monday's slide as investors digested the new round of US sanctions targeting the country's tycoons. On April 2, China retaliated in kind, with tariffs on USA exports to China, including meat, wine, fruits and grain.
Throughout April, the US and China have been threatening more tariffs on each other.
Trump spoke about the clash in an interview with the "Bernie and Sid" radio show on 77 WABC Radio that was taped Thursday and aired Friday.
"It is generally said that the Chinese can take more pain - that's probably true", he said.
Sacha Tihanyi, Deputy Head of Emerging Markets Strategy at TD Securities, thinks investors are going to like what they hear. "When a vehicle is sent to China from the United States, there is a Tariff to be paid of 25%", Trump tweeted.
Donald Trump can not be blamed for threatening to take steps to bring about some degree of balance in trade with China.
The U.S. imported 58,000 passenger cars from China worth $1.5 billion previous year, according to the International Trade Administration, a federal agency within the Department of Commerce.
"Human society is facing a major choice to open or close, to go forward or backward", Mr Xi said to the audience made up mainly of Chinese and worldwide investors.
James Laurenceson, deputy director of the Australia-China Relations Institute at UTS, said the Chinese response - that they would be playing by the World Trade Organisation rules as much as possible - was "a pretty smart one".