US threatens

late August on the list of targeted products and an administra-

about two months to finalize, at which point Trump would decide whether to go ahead with the levies.

The eventual goal is to impose tariffs on 40 percent of Chinese imports, the same proportion of US goods hit by Beijing’s retali-

If the measures are imposed, it would mean new taxes on

Markets tumble

Reacting to the “totally unacceptable” Washington list, the commerce ministry in Beijing said it would be forced to take “countermeasures.”

“The behaviour of the US is hurting China, hurting the world, and hurting itself,” the ministry said in a statement, saying it was “shocked” by the US actions.

“In order to safeguard the core interests of the country and the fundamental interests of the people, the Chinese government as always will have no choice but to take the necessary countermeasures,” it added.

Beijing said it would “immediately” tack on the case to its suit against Washington’s “unilateralist” behavior at the World Trade Organization.

At a forum in Beijing, a senior

- aging the world economic order” and said tit-for-tat tariffs would “destroy” trade between the rival powers.

“The outburst of large- scale mutual levying of tariffs between China and the United States will inevitably destroy Sino- US trade,” said assistant minister of commerce Li Chenggang.

The dispute comes on top of Washington’s confrontation with other allies and major trading partners including Canada, Mexico and the European Union, after it imposed steep tariffs on their steel and aluminum. Those nations have also retaliated.

The new trade frictions sent investors running for cover, with equity markets across Asia tumbling more than one percent.

The benchmark Shanghai Composite Index led the declines, dropping 1.76 percent. Hong Kong’s Hang Seng Index dropped 1.29 percent while Tokyo’s Nikkei was off 1.19 percent.

“The market didn’t expect the second round of tariffs would come so quickly and it has impacted investor sentiment,” said Zhang Gang, analyst with Central China Securities.

The trade confrontation between Washington and Beijing has been escalating for months, despite Trump’s repeated statements that he has a good relationship with China’s President Xi Jinping.

China accused the US of starting “the largest trade war in

round of week.

tariffs took

effect

last

‘ Unfair practices’

But Trump has said continuously that China has taken advantage of the US economy, and he has vowed to hit nearly all the country’s products with tariffs, as much as $450 billion.

with China ballooned to a record $375.2 billion last year, stoking his anger.

For now, the USTR continues

- izing an additional $16 billion in goods to face 25-percent tariffs to bring the total up to $50 billion. Beijing has vowed to retaliate accordingly.

The new list of goods to face 10- percent punitive duties includes frozen meats, live and

- ions, garlic and other vegetables, fruits, nuts, metals, and a massive list of chemicals, as well as tires, leather, fabrics, wood and paper.

target goods that would reduce the harm to US consumers.

They also said they remain open to working with China to try to resolve the dispute, but the response from Beijing so far has been unsatisfactory.

“For over a year, the Trump Administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition,” Lighthizer said.

“Unfortunately, China has not changed its behavior.”

But he added that “the United States is willing to engage in efforts that could lead to a resolution of our concerns.”