China fires back at Trump with tariffs on US goods, says it's time to end 'outdated and regressive behavior'

Reuters/Carlos Barria

President Donald Trump welcomes Chinese President Xi Jinping at Mar-a-Lago state in Palm Beach, Florida.

• President Donald Trump announced tariffs on $50 billion worth of Chinese goods.
• China's Ministry of Commerce said the country will respond with equal tariffs on US goods.
• The Chinese government also urged Trump to not start a trade war.
• "We call on all countries to take joint action, resolutely put an end to this outdated and regressive behavior, and firmly defend the common interests of mankind," the Chinese government said in a statement.

The Chinese government on Friday hit back with tariffs on US goods, hours after President Donald Trump's announcement that the US would hit $50 billion worth of Chinese goods with a 25% tariff.

The country's Commerce Ministry said China will apply tariffs on US goods at the "same scale and the same strength." Its statement also said all trade agreements made between the two countries during recent negotiations would be void due to the new US tariffs.

China's government urged the US to back down from its current course of action.

"China does not want to fight a trade war," the Commerce Ministry said. "However, in the face of short-sighted behavior that the United States has done against people's disadvantages, the Chinese side has to give a strong blow back, resolutely safeguard national interests and the interests of the people, and resolutely defend economic globalization and the multilateral trading system."

The back and forth set off a wave of worry among trade experts, economists, and investors. Following the announcement, the Dow Jones industrial average nosedived almost 230 points, or 0.91%, as of 10:55 a.m. ET. The S&P 500 was off around 0.65%, and the tech-heavy Nasdaq composite was down just 0.33%.

The tariffs are the latest chapter in the ongoing trade conflict between the two countries. Trump kicked off the action in March with the announcement that the US would impose tariffs on Chinese goods as punishment for the theft of US intellectual property by China.

A series of negotiations appeared to make headway toward a deal to avoid the conflict, but ultimately Trump decided to move ahead with the crackdown, scuttling any hope of an agreement.

China also appealed to other countries to pressure the US to end recent protectionist trade policies. Trump recently hit US allies including the European Union, Canada, and Mexico with tariffs on steel and aluminum imports.

"In today's era, launching a trade war is not in the global interest," China's Commerce Ministry said. "We call on all countries to take joint action, resolutely put an end to this outdated and regressive behavior, and firmly defend the common interests of mankind."

Geopolitical analysts have warned that Trump's trade attacks on US allies could isolate the US and help China realize its goal of becoming the dominant player in international relations.