President Trump and Secretary of State Mike Pompeo have repeatedly attacked China, flaring tensions between the two countries. The Trump administration is reportedly reconsidering the phase one trade deal signed in January, The Hill reports.

The rising tensions could create headwinds for markets, CNBC reports. "So far, the war of words between the countries over blame for the coronavirus, the U.S. crackdown on Huawei and now Chinese companies listing on American exchanges have not had a major impact on the Wall Street stocks. But in the last two sessions, the countries’ relationship has hung over the market."

On Friday, global stocks fell after China imposed new rules on Hong Kong. The rules give Beijing greater control over Hong Kong and allow Chinese officials to crack down on democracy protesters. At the close of markets Friday, Hong Kong's Hang Seng index fell 5.7%, Markets Insider reported.

Congress has followed Trump's lead, with the Senate passing a bill requiring companies to certify "they are not owned or controlled by a foreign government," according to CNBC.

Trump is also using China as a campaign issue.

In January, the U.S.-China trade deal was hailed by Trump as "a big, beautiful monster." Agricultural groups lavished the administration with praise for reaching the deal, but almost immediately concerns emerged about the benchmarks established in the deal.

Will the trade deal between the U.S. and China hold?

"Trump's much-touted trade victory has crashed and burned," according to ForeignPolicy.com. China is expected to fail to meet the targets for energy purchases outlined in the trade pact.

White House economist Larry Kudlow told MarketWatch Thursday that the deal was "intact."