China threatens retaliation for U.S. tariffs

China vowed on Wednesday to “fight back” after the United States announced a possible second round of tariff hikes on $200 billion worth of Chinese goods. The U.S. proposal released on Tuesday included increased taxes on imported food products and consumer electronics. China’s Ministry of Commerce released a statement saying the move was “totally unacceptable,” adding that Beijing will take unspecified “necessary countermeasures” to protect its interests. On Friday, the United States added 25 percent duties on Chinese goods worth $34 billion. China also increased taxes on the same amount of U.S. imports in retaliation.

The ongoing spat is fueling more concerns of a full-blown trade war. China’s main stock index lost 1.8 percent on Wednesday, while stocks on Wall Street opened lower Wednesday, with tech and industrial stocks taking the biggest hit.