U.S. President Donald Trump said he would increase taxes on all Chinese goods and demanded that American companies stop doing business with China as his anger toward Beijing and his Federal Reserve chair increased, the New York Times reports.

Twelve hours after China said it would retaliate against Trump’s next round of tariffs by raising taxes on American goods, including crude oil, automobiles and farm products like soybeans, pork and corn, Trump said he would bolster existing tariffs on $250 billion worth of Chinese goods to 30% from 25% on Oct. 1, according to the Times. Those tariffs apply to bolts, screws and other fasteners, as well as other select goods, manufactured in China.

Trump also said the U.S. would tax another $300 billion worth of Chinese imports at a 15% rate, rather than the 10% he had initially planned. Those levies go into effect on September 1 and include all iron and steel nuts (HTS subheading 7318.16.00) imported from China.

In addition to hiking tariffs, Trump ordered U.S. companies to cut ties with Beijing.

“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing our companies HOME and making your products in the USA,” he tweeted, adding, “We don’t need China and, frankly, would be far better off without them.”

In response, stocks fell sharply, with the S&P 500 closing down 2.6%. The Dow Jones industrial average was down slightly more than 2%.

“Behind the tirade was the growing reality that the type of trade war Mr. Trump once called ‘easy to win’ is proving to be more difficult and economically damaging than the president envisioned,” according to the Times. “Mr. Trump’s stiff tariffs on Chinese goods have been met with reciprocal levies, hurting American farmers and companies and contributing to a global slowdown.”

Retailers condemned the tariff hikes.

“It’s impossible for businesses to plan for the future in this type of environment” said David French, the senior VP for government affairs at the National Retail Federation. “The administration’s approach clearly isn’t working, and the answer isn’t more taxes on American businesses and consumers. Where does this end?”

While some companies have begun looking for other places to locate their supply chains, including Vietnam, many businesses — particularly smaller ones — say such a move is costly, time-consuming and could put them out of business, according to the Times.

Trump’s original 10% duty on fasteners from China was applied September 24, 2018.

The Office of the U.S. Trade Representative (USTR) announced a tariff exclusion request process for Section 301 tariffs in July. USTR will accept exclusion requests until Sept. 30, 2019. Any exclusions granted will be retroactive to Sept. 24, 2018, when the duties were first put in place. The exclusion will last for a period of one year after it has been granted.

To submit a Section 301 exclusion request, requesters must first register on the portal at http://exclusions.USTR.gov.