The US president has threatened further escalation with an extra 50% levy against Beijing

China's Commerce Ministry has warned Washington against entering a never-ending spiral of tit-for-tat trade restrictions, after US President Donald Trump threatened to impose additional tariffs on Chinese imports.

Last week, the US president announced sweeping new tariffs on imports from around the world, including a 34% duty on Chinese goods. In response, Beijing vowed to retaliate with a proportional 34% tariff increase on American exports - prompting Trump to threaten further escalation.

Beijing condemned the growing trade war as a form of "economic bullying," with the Commerce Ministry promising on Tuesday to take firm countermeasures to protect China's national interests.

"China will fight till the end if the US side is bent on going down the wrong path," a ministry spokespersonsaid, as quoted by Xinhua.

Trump has defended what he calls "reciprocal tariffs" - which range from 10% to 49% on imports from all countries - as a necessary step to eliminate the US trade deficit. He argues the tariffs will make foreign goods less attractive for American consumers, while pressuring international partners to open their markets to US exports.

In a post on Truth Social Monday, Trump warned that not only China, but any country that dares to retaliate "will be immediately met with new and substantially higher tariffs."

The intensifying global trade war has already rattled financial markets. According to Bloomberg, more than $10 trillion has been wiped off global equities as of Monday. Bitcoin dropped below $75,000 for the first time in five months, while most of the top 100 altcoins fell by 15% or more. Meanwhile, JPMorgan raised the odds of a US and global recession to 60% by year-end, up from a previous estimate of 40%.

Trumpdefendedhis actions, stating that "sometimes you have to take medicine to fix something," and promised that jobs and investment would return to the United States, making it "wealthy like never before."

(RT.com)