"Don't panic" - Josh Frydenberg intervenes as US China trade war escalates

As the trade war between the United States and China escalates, Treasurer Josh Frydenberg has intervened this morning to shore up confidence in the domestic economy.

Mr Frydenberg says the escalation is "concerning" but hopes that "cool heads prevail". 

While Wall Street has bounced back from yesterday's steep losses, Mr Frydenberg told ABC's Peter Ryan that there are reasons to be concerned.