Trump, China escalate trade dispute as markets tumble

WASHINGTON (AP) — Unwilling to yield, President Donald Trump and China's government escalated their trade clash Friday, with Beijing vowing to "counterattack with great strength" if Trump follows through on threats to impose tariffs on an additional $100 billion in Chinese goods.

Trump made his out-of-the-blue move when China threatened to retaliate for the first round of tariffs planned by the United States. But for someone who has long fashioned himself as a master negotiator, Trump left it unclear whether he was bluffing or willing to enter a protracted trade war pitting the world's two biggest economies against each other, with steep consequences for consumers, businesses and an already shaken stock market.