US President Donald Trump has announced he will further increase trade tariffs against China after Beijing unveiled its new duties of 10% on $75bn dollars worth of US goods
In a series of angry tweets, Mr Trump said that a planned 25% tax on $250bn worth of Chinese goods will now be increased to 30% from October.
Mr Trump also said he is ordering American firms to find alternatives to trading with China.
The intensifying US-China trade war stoked market fears that the global economy will tip into recession, sending US stocks into a tailspin, with the Nasdaq Composite down 3%, and the S&P 500 down 2.6%.
US Treasury yields also fell as investors sought safe-haven assets, and crude oil, targeted for the first time by Chinese tariffs, fell sharply.
Trump's tariff response was announced after markets closed on Friday, leaving potentially more damage for next week.
"Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer," Trump said on Twitter. "As President, I can no longer allow this to happen!"
He said the United States would raise its existing tariffs on $250 billion worth of Chinese imports to 30% from the current 25% beginning on Oct. 1, the 70th anniversary of the founding of the communist People's Republic of China.
At the same time, Mr Trump announced an increase in planned tariffs on the remaining $300bn worth of Chinese goods to 15% from 10%.
