Trade row deepens as China ups tariffs on $60B in US goods

BEIJING (AP) — Deepening a trade battle and sending financial markets spinning, China announced Monday it was raising tariffs on $60 billion of U.S. goods in retaliation for the latest hike in U.S. tariffs on its exports.

The Finance Ministry said Monday the new penalty duties of 5% to 25% on hundreds of U.S. products including batteries, spinach and coffee will take effect June 1.

That followed Trump's increase on Friday of duties on $200 billion of Chinese imports from 10% to 25% after charging that China had backtracked on commitments it made in earlier negotiations in a dispute over Beijing's technology ambitions and perennial trade surplus.

Resuming his messages over Twitter early Monday, President Donald Trump warned Chinese President Xi Jinping (shee jihn-peeng) that China "will be hurt very badly" if it doesn't agree to a trade deal.

Trump tweeted China "had a great deal, almost completed, & you backed out!"

Trump insisted the tariffs the U.S. has placed on Chinese goods don't hurt American consumers, saying there is "no reason for the U.S. Consumer to pay the Tariffs."

White House economic adviser Larry Kudlow acknowledged Sunday that U.S. consumers and businesses pay the tariffs. "Both sides will pay," he told Fox News.

China had vowed "necessary countermeasures" on Friday against Trump's escalation of the tariff conflict.

Frazzled by the uncertainty, shares sank Monday across the globe. Futures contracts for the Dow Jones Industrial Average and the S&P 500 were down 2 percent before markets opened on Wall Street.

Beijing is running out of U.S. imports for penalties due to the lopsided trade balance between the world's two largest economies. Regulators have targeted American companies in China by slowing down customs clearance for shipments and...