BEIJING (AP) – China announced a $3 billion list of U.S. goods for possible retaliation in a tariff dispute with President Donald Trump and girded for a bigger battle over technology policy as financial markets sank on fears of disruption to global commerce.
The Commerce Ministry said higher duties on pork, apples, steel pipe and other goods would offset Chinese losses due to Trump’s tariff hike on steel and aluminum imports. It urged Washington to negotiate a settlement but set no deadline.
In a separate dispute with potentially bigger consequences, the ministry criticized Trump’s decision Thursday to approve a possible tariff hike on Chinese goods worth up to $60 billion over Beijing’s technology policy. It gave no indication of a possible response but the foreign ministry said Beijing will take “all necessary measures” to protect its interests.
Financial markets sank on concern the escalating tensions might disrupt the biggest global trading relationship or lead other nations to raise import barriers.
U.S. stocks sank. In Asia, Tokyo’s benchmark tumbled by an unusually large 4.6 percent while the Shanghai Composite index fell 4.5 percent.
