Trade Dispute Between U.S. and China Deepens as Beijing Retaliates

The United States and China intensified their trade dispute on Monday, as Beijing said it would increase tariffs on nearly $60 billion worth of American goods and the Trump administration detailed plans to tax nearly every sneaker, computer, dress and handbag that China imports to the United States.

The escalation thrust the world’s two largest economies back into confrontation. While Mr. Trump said on Monday that he would meet with China’s president, Xi Jinping, next month in Japan, the stakes are only increasing as the president continues to taunt and threaten China, causing it to retaliate on American businesses.

Financial markets fell on Monday after China detailed plans to increase tariffs, with the S&P 500 index down more than 2.4 percent for the day and more than 4 percent this month. Shares of companies particularly dependent on trade with China, including Apple and Boeing, fared poorly, and yields on three-month Treasury securities exceeded those on 10-year bonds, a sign that investors may be souring on the outlook for short-term economic growth.

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