China threatens to hit back as Trump seeks additional tariffs on $100 billion worth of Chinese goods

The United States and China dug in for a protracted trade war Friday, with the Chinese government saying it would “fight at any cost” President Trump’s threat to slap new tariffs on $100 billion in Chinese goods.

While the White House offered a slim hint Friday that it would be prepared to negotiate an end to the deepening standoff, Treasury Secretary Steven Mnuchin also acknowledged “the potential of a trade war.” His remarks on CNBC spurred fears of an open brawl between the world’s two largest economies and immediately sent the Dow Jones industrial average plummeting 767 points.

Mnuchin added he was “cautiously optimistic” that the two sides would be able to reach an agreement. “Our objective is still not to be in a trade war,” Mnuchin said.

Trump announced that he was considering expanded tariffs Thursday night, hours after administration officials played down the idea of a trade war. On Friday morning, China’s Commerce Ministry told reporters that it would retaliate if the new tariffs were imposed, saying, “China has very detailed countermeasures.”

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