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

BEIJING (AP) — Deepening its trade battle with the U.S. and sending financial markets spinning, China announced tariff hikes Monday on $60 billion of American goods in retaliation for President Donald Trump's latest penalties on Chinese products.

Punitive charges of 5% to 25% on thousands of American products including batteries, spinach and coffee will take effect June 1, the Finance Ministry said. That extends Chinese duty increases to $110 billion of imports from the United States.

The announcement followed an increase of U.S. duties on $200 billion of Chinese imports to 25% from 10% in the increasingly bitter dispute. American officials have accused China of backtracking on commitments they say it made in earlier negotiations.

On Twitter, Trump warned Chinese President Xi Jinping (shee jihn-peeng) his country "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!"

The president insisted increases 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 do pay the tariffs. "Both sides will pay," he told Fox News.

China had vowed "necessary countermeasures" on Friday against Trump's escalation.

Frazzled by the uncertainty, shares sank Monday across the globe. The Dow Jones Industrial Average lost 622.10 points or 2.4%, while the Standard & Poor's 500 sank 2.5% in early trading.

China's announcement Monday said tariff increases are going ahead based on a list of $60 billion of U.S. goods Beijing released in August. That list was issued in response to Trump's threat to raise tariffs on $200 billion of Chinese goods to...