China's President Xi Jinping shakes hands with U.S. President Donald Trump (L) during a business leaders event at the Great Hall of the People in Beijing on Nov. 9, 2017.

Trade fears looked set to continue simmering after a week dominated by developments in a trade spat involving the world's two largest economies.

U.S. stocks fell sharply on Friday after President Donald Trump's threat — he had asked U.S. trade officials to consider another $100 billion in tariffs on Chinese goods. China's commerce ministry said it would "fight back with a major response" if provoked.

Earlier in the year, the U.S. imposed tariffs on imported solar panels, as well as steel and aluminum imports.

China, in turn, implemented additional tariffs on 128 U.S. products, including fruit and pork, in response to the Trump administration's decision to impose duties on steel and aluminum. It also announced extra tariffs on 106 U.S. products last week, although no start date was given for those measures.

Trump said in a tweet on Sunday that China will remove trade barriers as that was the "right thing to do." The president also expressed optimism that the countries would strike a deal on intellectual property.

Markets have been on edge over elevated trade rhetoric between the two countries possibly resulting in a potential trade war, which would be a negative for global economic growth.

Some analysts, however, were more sanguine about an agreement eventually being brokered as threats from the Trump administration were seen as part of its negotiation tactics.