China fires back at Trump with the threat of tariffs on 106 U.S. products, including soybeans

China responded to President Trump’s new tariffs by threatening tariffs of its own on 106 U.S. products, including soybeans, cars and some airplanes, in the latest escalation of what risks becoming a tit-for-tat trade war between the world’s two largest economies.

Under the plan announced Wednesday, Beijing would slap 25 percent levies on a range of U.S. goods worth about $50 billion. Chinese officials did not set a date for implementation, saying that what happens next will depend on whether the U.S. president pushes ahead with his tariff plans.

Even with the tariffs not yet in place, the news had an immediate impact on markets. On Wall Street, the Dow Jones industrial average was down about 2 percent at the opening bell.

Hong Kong’s Hang Seng Index dropped 2.2 percent, and South Korea’s main exchange was down more than 1 percent. In Europe, all major markets opened lower.

Soybeans on the Chicago Board of Trade immediately dropped as much as 5.3 percent, while wheat and corn futures also slid, Bloomberg reported.

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