China has vowed to fight the United States ‘at any cost’ after US President Donald Trump plans an additional $100 billion (£71 billion) in tariffs on Chinese goods.
Mr Trump’s move comes a day after Beijing announced plans to tax $50 billion (£35 billion) in American products.
Financial markets fell sharply following the tit-for-tat trade row between the world's two largest economies.
In Beijing, the Commerce Ministry said China is not afraid to fight a trade war.
"China will dedicate itself to the end and at any cost and will definitely fight back firmly" if the US persists in its "protectionism," the ministry said in a statement.
In a statement, Mr Trump said "China's illicit trade practices - ignored for years by Washington - have destroyed thousands of American factories and millions of American jobs.”
He has also instructed his secretary of agriculture "to implement a plan to protect our farmers and agricultural interests".