The trade standoff between the world’s two largest economies deepened Tuesday, with China vowing to “fight to the end” against sweeping new U.S. tariffs, heightening fears of a prolonged economic conflict with significant global security and financial implications.

The warning from Beijing came after U.S. President Donald Trump threatened to impose an additional 50 percent tariff on Chinese imports. China responded with a swift retaliatory measure: a 34 percent levy on U.S. goods, set to take effect Thursday.

“If the U.S. insists on going its own way, China will fight it to the end,” a spokesperson from China’s commerce ministry said. “We will resolutely take countermeasures to safeguard our rights and interests.”

Labeling the U.S. approach as “blackmail,” Beijing also signaled a willingness for dialogue, noting that “there are no winners in a trade war.”

The tit-for-tat tariffs have roiled global financial markets. On Monday, Hong Kong’s Hang Seng Index suffered its worst day since the 1997 Asian financial crisis, tumbling 13.2% before stabilizing slightly in early Tuesday trading. U.S. equities followed suit, with the Dow and S&P 500 ending lower after a volatile session. Emerging markets, including Thailand, Indonesia, and Vietnam, also posted sharp declines.

Singapore’s Prime Minister Lawrence Wong expressed deep disappointment in Washington’s move, stating: “These are not actions one does to a friend.”

Amid mounting investor anxiety, China’s central bank announced emergency market stabilization efforts, including support for sovereign wealth fund purchases of exchange-traded funds. In Tokyo, stocks rallied briefly after U.S. Treasury Secretary Scott Bessent hinted that Japan could receive priority in tariff negotiations due to its early engagement.

Trump, however, doubled down, stating, “I’m not looking at any pause,” and scrapping planned meetings with Chinese officials. He added that permanent tariffs remain an option and reiterated his belief that the measures would restore