"The developments support our outlook or a weaker USA dollar this year", MUFG analyst Lee Hardman said, referring to events within the Trump administration and the trade fears.
Washington's move to target Chinese firms comes amid allegations of intellectual property theft.
Mark Zandi, chief economist at Moody's Analytics, said earlier this month that the USA may lose up to 150,000 jobs if trade partners including Europe and others such as Japan retaliate against Trump's tariffs.
The White House declined to comment on the size or timing of any move.
Equity markets were attempting to recover after Tuesday's hefty losses, heartened by robust Chinese factory data, but struggled to overcome the fear of a global trade war as well as the prospect of political uncertainty in the US.
Trump is targeting Chinese high technology companies to punish China for its investment policies that effectively force U.S. companies to give up their technology secrets in exchange for being allowed to operate in the country, as well as for other IP practices Washington considers unfair.
President Trump is expected to unveil a massive "package of tariffs" against China in the coming weeks, multiple sources close to the White House told Politico.
NCAA Tournament Texas Southern vs. North Carolina Central
But they barely reached 20 wins, limped to an 8-10 record in the Pac-12 and lost in the first round of the conference tournament . Lower even, like they played against Clemson in a win recently (55-52). "Arizona State is a very good team", Boeheim said.
The euro slipped 0.2 per cent against the dollar, inching off an overnight one-month high after European Central Bank President Mario Draghi said the ECB needed more evidence that inflation was rising toward target.
China has a trade surplus of more than $375 billion with the USA and when the lead economic adviser for President Xi Jinping recently visited Washington, the administration pushed him to give them a way China could reduce that number.
The heightened possibility of a trade war and Tillerson's departure reduced investor risk appetite, even as US inflation data released on Tuesday showed an annual core inflation of 1.8 percent, which met expectations and would have likely increased risk appetite under a different political climate.
Trump came to office on a protectionist agenda and his first action as president was to pull the United States out of a Pacific trade pact, known as the Trans-Pacific Partnership (TPP).
He told the Daily News that the European Union "should not be hasty" and try to negotiate a deal to address USA concerns about national security, which is the stated reason why Trump says he is allowed to place the tariffs.
A senior Trump administration official told Reuters these steep tariffs against China are likely "in the very near future".