China announced additional tariffs on 106 U.S. products on Wednesday, in a move likely to heighten global concerns of a tit-for-tat trade war between the world’s biggest economies.
The effective start date for the new charges will be revealed at a later time, though China’s Ministry of Commerce said the tariffs are designed to target up to $50 billion of U.S. products annually.
The 25 percent levy on U.S. imports includes products such as soybeans, cars and whisky, Beijing said.
The move comes less than 24 hours after President Donald Trump unveiled a list of Chinese imports that his administration aims to target as part of a crackdown on what the president deems unfair trade practices.
Sectors covered by Trump’s proposed tariffs include products used for robotics, information technology, communication technology and aerospace.
The trade showdown between Washington and Beijing has rattled investors and fueled market fears that the dispute could soon spiral into a full-blown trade war.
China’s proposed countermeasures prompted U.S. stock index futures to tumble ahead of Wednesday’s open. At around 4:30 a.m. ET, Dow futures sank 407 points, indicating a drop of 391 points at the open. The Nasdaq and the S&P 500 futures also indicated heavy losses at the open for their respective markets.
Meanwhile, Wednesday’s announcement also prompted European stocks to extend losses, with the pan-European Stoxx 600 hitting a session low of 0.8 percent shortly after the news.
The Chinese yuan also suffered its biggest daily fall against the dollar in two weeks after the measures were proposed. The currency slipped 0.4 percent to hit 6.3015 per dollar.
