China vows 'fight to the end' as Trump threatens extra 50% tariff

(Sharecast News) - China said it would "fight to the end" after Washington threatened an additional 50% tariff if Beijing went ahead with retaliatory measures of its own against American imports.

US President Donald Trump made the threat late on Monday, a move described as "a mistake on top of a mistake, which once again exposes the US's blackmailing nature", Agence France-Presse quoted a Commerce Ministry spokesperson as saying on Tuesday.

"China will never accept this. If the US insists on going its own way, China will fight it to the end. If the US escalates its tariff measures, China will resolutely take countermeasures to safeguard its own rights and interests."

Stockmarkets have been in turmoil since last week when Trump unveiled sweeping tariffs against all trading partners, raising fears of a global recession.

China, which has been hardest hit, responded with 34% duties on US goods to come into effect on Thursday. The Commerce Ministry on Tuesday also reiterated that it sought "dialogue" with the US, and that there were "no winners in a trade war".

European shares were expected to open higher on Tuesday after a three-day battering as investors dumped stocks in response to Trump's actions.

In Asia, share rebounded from a similarly tumultuous few days. Tokyo was up more than 6%, recovering much of Monday's drop, after Japanese prime minister Shigeru Ishiba held talks with Trump. Shares in Nippon Steel surged more than 10% after Trump launched a review of its proposed takeover of US Steel that was blocked by Joe Biden, his predecessor.

Hong Kong gained more than 2% but was well off recouping Monday's loss of more than 13% that was the biggest one-day retreat since 1997. Meanwhile shares in Shanghai rose after China's central bank promised to back major state-backed fund Central Huijin Investment in a bid to maintain "the smooth operation of the capital market".

US shares pared losses from previous days, while the tech-heavy Nasdaq index made small gains. Oil prices also enjoyed some respite, with Brent crude up 1% to $64.85 a barrel.

Reporting by Frank Prenesti for Sharecast.com