"I think the Fed is making a mistake", Trump said to reporters after landing in Erie, Pennsylvania, for a campaign rally on Wednesday. "The Fed is going wild".
Trump began imposing tariffs on hundreds of billions of dollars worth of Chinese imports in January 2018, with Beijing retaliating by slapping tariffs on U.S. goods in response.
But higher USA interest rates have also helped send emerging market currencies into a tailspin, as countries that borrowed heavily in dollars race to pay back debt.
Trump's comments Wednesday triggered a sell-off on Wall Street, with Asian markets opening sharply lower on Thursday in response.
"The US equity bloodbath is taking no prisoners in Asia as a sea of red greets investors at the open, as equity deleveraging and liquidation intensifies", he said.
Trump has departed from that practice and has said he would not shy from future criticism should the Fed keep lifting rates.
And while he acknowledged higher rates helped savers, he criticized the Federal Reserve's tactics as "too aggressive".
As well as criticising the Fed, Mr Trump said his trade policies had hurt China's economy. "But I think the fed has gone insane". "They're so tight. I think the Fed has gone insane".
"It seems like the Fed is continuing on the course that markets expect, to raise interest rates given the tight labour market", said Phillip Swagel, who was a top Treasury official during the George W. Bush administration. And I have a lot more to do if I want to do it and I don't want to do, but they have to come to the table.
"The markets are fraught with peril", warned Stephen Innes, head of trading at OANDA, adding there was a "horrible intersection of risk aversion" from the US-China trade conflict and rising US interest rates.
At market close Wednesday, the Dow Jones average was still up more than 5,000 points since President Trump took office.
The Federal Reserve has been gradually raising interest rates to less stimulative levels in response to strong growth in the USA economy and historically low unemployment levels.
Chinese internet group Tencent fell for the tenth consecutive day, dropping more than 7% through morning trade.
"Later, White House Press Secretary Sarah Sanders said the fundamentals and the future of the USA economy remain incredibly strong". The S&P 500 lost 94 points, or 3.3 percent, to 2,785.
The Dow plunged almost 832 points on Wednesday, the third-worst point decline in history.
The market is reacting to a "triple whammy" of rising interest rates, higher oil prices and a stronger dollar, according to Yardeni Research.