Amidst reports that some 200 American firms are in talks of moving their units from China to India, US President Donald Trump today warned his Chinese counterpart Xi Jinping that China will be hurt very badly it does not make a trade deal.

The American companies will be forced to leave China for other countries, Trump tweeted.

Officials of the Trump Administration say that China backed out of a trade deal that they had negotiated over past several months involving top officials from the two countries.

Meanwhile, China’s finance ministry said it plans to set import tariffs ranging from 5 per cent to 25 per cent on 5,140 U.S. products on a target list worth about $60 billion. It said the tariffs will take effect on June 1.