Markets tumble after latest salvo in trade war with China

U.S. markets tumbled Tuesday morning after the Chinese government accused U.S. President Donald Trump of launching a trade war with new tariffs announced Tuesday. Trump directed the U.S. trade representative’s office to come up with $200 billion in Chinese goods to slap with a 10 percent import tax. The proposed tariffs would cover the biggest group of goods so far in the ongoing trade spat between the two countries. “If the U.S. side becomes irrational and issues the list, China will have to adopt comprehensive measures in quantity and quality in order to make strong countermeasures,” the Beijing government said in a statement issued by the Ministry of Commerce. Trump has ordered tariffs on a total of $450 billion in Chinese imports in the last few months in a bid to close the gaping trade deficit between the two countries. The proposed tariffs equal 89 percent of Chinese goods imported into the United States last year.