Concerns are mounting that Donald Trump’s decision to sign into law two bills supporting human rights in Hong Kong could scupper delicate trade talks between the US and China, with knock-on effects for the faltering global economy.

Analysts warned of “hugely negative” effects on Hong Kong’s position as an important financial hub after China reacted angrily to the new laws on Thursday.

Mr Trump is due to raise tariffs on some $160bn of Chinese products, including smartphones and laptops, on 15 December. However, representatives of both of the world’s two largest economies had suggested that a deal to de-escalate tensions was close.

Washington's latest moves in response to ongoing pro-democracy protests in Hong Kong put that progress in jeopardy.

The laws call for sanctions against Chinese and Hong Kong officials deemed to have abused human rights, and also require annual reviews of Hong Kong’s special trade status with the US.

Hong Kong protests: Latest after court strikes down face mask ban Show all 24 1 /24 Hong Kong protests: Latest after court strikes down face mask ban Hong Kong protests: Latest after court strikes down face mask ban Police in riot gear move through a cloud of smoke as they detain a protester at the Hong Kong Polytechnic University AP Hong Kong protests: Latest after court strikes down face mask ban A protester takes cover under an umbrella Reuters Hong Kong protests: Latest after court strikes down face mask ban A protestor reacts to police officers EPA Hong Kong protests: Latest after court strikes down face mask ban Pro-democracy protesters react after the police fired tear gas outside the Hong Kong Polytechnic University EPA Hong Kong protests: Latest after court strikes down face mask ban A pro-democracy protester holds a placard EPA Hong Kong protests: Latest after court strikes down face mask ban Protesters react as police fire tear gas AFP via Getty Hong Kong protests: Latest after court strikes down face mask ban An anti-government protester is silhouetted during protests Reuters Hong Kong protests: Latest after court strikes down face mask ban Tear gas engulf umbrellas Reuters Hong Kong protests: Latest after court strikes down face mask ban A protester lowers himself down a rope from a bridge to a highway, to escape AFP via Getty Hong Kong protests: Latest after court strikes down face mask ban People form a human chain to pass materials as they gather for a march towards Hong Kong Polytechnic University AFP via Getty Hong Kong protests: Latest after court strikes down face mask ban Protesters are seen after leaving the campus of the Hong Kong Polytechnic University Reuters Hong Kong protests: Latest after court strikes down face mask ban Pro-democracy protesters during clashes with police outside the Hong Kong Polytechnic University EPA Hong Kong protests: Latest after court strikes down face mask ban Police spray blue-dyed liquid AP Hong Kong protests: Latest after court strikes down face mask ban Protesters are sprayed with blue liquid from water cannon during clashes with police outside Hong Kong Polytechnic University (PolyU) in Hong Kong, China, November 17, 2019. REUTERS/Tyrone Siu TYRONE SIU Reuters Hong Kong protests: Latest after court strikes down face mask ban Police officers detain a protester AP Hong Kong protests: Latest after court strikes down face mask ban An injured protester is evacuated by ambulance EPA Hong Kong protests: Latest after court strikes down face mask ban Injured people are taken away after clashes Getty Hong Kong protests: Latest after court strikes down face mask ban A protester throws back a tear gas canister fired by police at the Hong Kong Polytechnic University in Hong Kong on November 17, 2019. - Hong Kong police fired tear gas on November 17 morning at protesters intent on keeping their stranglehold on a major tunnel as pro-democracy activists vowed to "squeeze the economy" into next week. (Photo by Ye Aung Thu / AFP) (Photo by YE AUNG THU/AFP via Getty Images) YE AUNG THU AFP via Getty Hong Kong protests: Latest after court strikes down face mask ban Police arrest anti-government protesters Getty Hong Kong protests: Latest after court strikes down face mask ban A protester's umbrella is seen on fire during clashes with police outside Hong Kong Polytechnic University (PolyU) in Hong Kong, China November 17, 2019. REUTERS/Athit Perawongmetha ATHIT PERAWONGMETHA Reuters Hong Kong protests: Latest after court strikes down face mask ban Medical staff carry a protester out of the campus of Hong Kong Polytechnic University Reuters Hong Kong protests: Latest after court strikes down face mask ban Protesters try to extinguish a tear gas canister Reuters Hong Kong protests: Latest after court strikes down face mask ban Protesters take a rope down from a bridge to a highway, to escape from Hong Kong Polytechnic University campus AFP via Getty Hong Kong protests: Latest after court strikes down face mask ban A protestor gestures during a confrontation with police AP

So far, both the US and China have sought to keep Hong Kong and trade issues separate, said Tu Xinquan, of the University of International Business and Economics.

“China doesn't want to connect the two things together,” said Mr Tu. “China believes trade issues should not be politicised.”

However, Stephen Chiu, an analyst at Bloomberg Intelligence, warned that agreement would prove difficult.

“Regardless of what both sides said, it looks like it’s not easy to strike a consensus, so now even striking a phase-one deal could be hard,” Mr Chiu said.

Michael Hirson, of Eurasia Group, offered a more positive view. “To be sure, Beijing is angered at the US for interfering in what China considers its domestic affairs and for emboldening the protest movement,” he told the BBC.

“But some of China's anger over the bill is posturing for the domestic audience, and Beijing will not be so upset as to let this stand in the way of a truce over trade.”

In a statement, China's ministry of foreign affairs called the law “pure interference in China’s internal affairs” and a move “full of prejudice and arrogance ... extremely evil in nature and dangerous in motive”.

“The US side ignored facts, turned black to white, and blatantly gave encouragement to violent criminals who smashed and burned, harmed innocent city residents, trampled on the rule of law and endangered social order,” the statement said.

Hong Kong businesses have already been hit hard by the protests, with luxury retailers losing out on $2.2bn (£1.7bn) in sales this year, according to a report by Bain consultancy published on Thursday.

It found that wealthy shoppers had shunned Hong Kong, opting for China, South Korea and Japan instead.

Bain partner Claudia D'Arpizio said that 1,000 stores owned by luxury brands in Hong Kong are too many for a “market that is no longer a hub for touristic shopping”.

Markets reaction was muted on Thursday, in part because traders had already reacted to the news when the US congress passed the bill earlier this month, but before Mr Trump signed it into law.