Global shares tumbled on Monday after US President Donald Trump threatened to increase tariffs on Chinese goods by Friday, defying market expectations that the US and China would arrive at a trade deal this week.

Investors panicked after the The Wall Street Journal reported China was considering pulling out of planned talks this week altogether. Chinese officials were caught off-guard by the trade twist, according to the report, and exiting negotiations would conform to Beijing's strategy of not negotiating under duress.