.jpg?20250419')
China refused to bow to what it called "blackmail" from the United States as a global trade war ignited by President Donald Trump's sweeping tariffs showed little sign of abating on Tuesday, even as battered stock markets steadied.
Beijing's rebuke came after Trump threatened to ratchet up tariffs on US imports from the world's No. 2 economy to more than 100% on Wednesday in response to China's decision to match the "reciprocal" duties Trump announced last week.
"The US side's threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side's blackmailing nature," China's commerce ministry said.
"If the US insists on having its way, China will fight to the end."
Chinese manufacturers of goods from tableware to flooring are warning about profits, scrambling to plan new overseas plants and haggling with customers over prices as they reel from the tariff news.
The European Union has proposed counter-tariffs of its own to Trump's onslaught that has swept up dozens of countries, sent financial markets into a tailspin and fuelled expectations that the global economy may be headed for recession.
Stock markets found a firmer footing on Tuesday after a gut-wrenching few days for investors which prompted some business leaders, including those close to Trump, to urge the president to reverse course.
European shares bounced off 14-month lows in early trading after four straight sessions of heavy selling, while global oil prices rebounded following a hefty sell-off.
Japan's Nikkei index closed 6% higher on Tuesday, rebounding from a 1-1/2-year low hit in the previous session, after Trump and Japanese Prime Minister Shigeru Ishiba agreed to open trade talks.
Chinese blue chips climbed 1%, clawing back some of the more than 7% slide on Monday. Hong Kong's Hang Seng Index rose after suffering the worst day since 1997 due to what the trading hub's leader called "ruthless" tariffs.
Indonesian markets were slammed, however, with stocks shedding 9% and the rupiah currency slumping to a record low as trading resumed after an extended holiday. Its central bank pledged to intervene, joining efforts by other global authorities to stem the rout in recent days.
As financial markets remained volatile, the head of the pan-European stock exchange operator Euronext said the United States was starting to resemble an emerging market.
"Fear exists all over," Stephane Boujnah told France Inter radio, saying the US had become "unrecognisable".
"There is a certain form of mourning, because the United States that we had known for the most part as a dominant nation resembled the values and institutions of Europe and now resembles more an emerging market."
Emerging markets often use targeted tariffs to protect certain industries from foreign competition.
Trump said the tariffs - a minimum of 10% for all US imports, with targeted rates of up to 50% - would help the United States recapture an industrial base that he says has withered over decades of trade liberalisation.
"It's the only chance our country will have to reset the table. Because no other president would be willing to do what I'm doing, or to even go through it," he told reporters at the White House.
EUROPE EYES COUNTER-MEASURES
The European Commission, meanwhile, proposed counter-tariffs of 25% on a range of US goods including soybeans, nuts and sausages, though other potential items like bourbon whiskey were left off the list, according to a document seen by Reuters.
Officials said they stood ready to negotiate a "zero for zero" deal with Trump's administration.
The 27-member bloc is struggling with tariffs on autos and metals already in place, and faces a 20% tariff on other products on Wednesday. Trump has also threatened to slap tariffs on EU alcoholic drinks.
Facing some of the steepest duties set to be imposed globally, low-cost manufacturing hub Vietnam has requested a 45-day delay and said it will buy more American goods, including defence and security products, to rebalance trade.
Investors and political leaders have struggled to determine whether Trump's tariffs are permanent or a pressure tactic to win concessions from other countries.
US Treasury Secretary Scott Bessent met with Trump in Florida on Sunday, Politico reported, to urge him to emphasise striking trade deals with partners in order to reassure the markets that there is an endgame to the US strategy.
Administration officials say dozens of other countries have reached out with the hope of heading off the tariffs due to take effect on Wednesday.
Wall Street leaders such as JPMorgan Chase CEO Jamie Dimon said the tariffs could have lasting negative consequences, while Trump supporter and fund manager Bill Ackman said they could lead to an "economic nuclear winter."
Elon Musk, the world's richest man and head of Trump's effort to slash government spending, has called for zero tariffs between the US and Europe, and the Washington Post reported that he has appealed directly to Trump to reverse the tariffs.
On Monday, Trump trade adviser Peter Navarro dismissed the Tesla CEO as a "car assembler."
&uuid=(email))