China vows to act on $200 billion U.S. tariff threat

China’s government vowed Wednesday to take “firm and forceful measures” as the U.S. threatened to expand tariffs to thousands of Chinese imports like fish sticks, apples and

French doors, the latest salvo in an escalating trade dispute threatening the global economy.

China gave no details, but it has plenty of options to retaliate that could extend beyond additional tariffs on U.S. imports. There are fears that Beijing could attempt to disrupt operations of American automakers, retailers and others that see China as a key market.

The spiralling conflict stems from Washington’s complaint that Beijing steals or pressures companies to hand over technology, and concerns that plans for state-led development of Chinese champions in robots and other fields might erode American industrial leadership.

A possible second round of tariff hikes announced Tuesday by the U.S. Trade Representative targets a $200 billion list of Chinese goods. The announcement came four days after Washington added 25 per cent duties on $34 billion worth of Chinese goods and Beijing responded by increasing taxes on the same amount of American imports.

The abrupt escalation is “totally unacceptable,” said a Chinese commerce ministry statement. It said Beijing would take unspecified “necessary countermeasures” to protect its “core interests.”

Asked what Beijing would do, foreign ministry spokesperson Hua Chunying gave no details but said, “We will take firm and forceful measures.”