US President Donald Trump on Tuesday warned he would be "tougher" on Beijing if trade talks extended beyond the 2020, US presidential election and he is re-elected, compounding market fears that the dispute could trigger a US recession.

The local share price index futures fell 0.6pc to 6,515.0, a 58.4-point discount to the underlying S&P/ASX 200 index close.

The benchmark inched down 0.1pc on Tuesday.

New Zealand's S&P/NZX 50 index dropped 0.5pc to 10,899.34 in early trade.

The benchmark had closed at an all-time high in the previous session.