China has said it will impose tariffs on $60B of U.S goods from 1 June, extending a bilateral trade war.
The move comes three days after the US more than doubled tariffs on $200bn of Chinese imports.
Earlier, US President Donald Trump denied that US consumers would pay for higher tariffs on Chinese imports and warned China not to follow suit.
But Beijing said it would not swallow any “bitter fruit” that harmed its interests.
“China should not retaliate – will only get worse!” Mr Trump tweeted shortly before news of the Chinese decision came.
Mr Trump also said China had “taken so advantage of the US for so many years”.
He added that US consumers could avoid the tariffs by buying the same products from other sources.
“Many tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!” he said.
Following the Chinese announcement, stocks on Wall Street fell in pre-market trading, VIX up +25% today, along with Treasury futures and gold.
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