Containers are seen at the Yangshan Deep Water Port in Shanghai, China August 6
File photo: Containers are seen at the Yangshan Deep Water Port in Shanghai, China August 6, 2019. Image Credit: REUTERS/Aly Song

WASHINGTON/BEIJING: US President Donald Trump on Friday lashed back at a new round of Chinese tariffs by heaping an additional 5% duty on some $550 billion in targeted Chinese goods in the latest tit-for-tat trade war escalation by the world’s two largest economies.

Trump’s move, announced on Twitter, came hours after China unveiled retaliatory tariffs on $75 billion worth of US goods, prompting the president earlier in the day to demand US companies move their operations out of China.

The intensifying US-China trade war stoked market fears that the global economy will tip into recession, sending US stocks into a tailspin, with the Nasdaq Composite .IXIC down 3%, and the S&P 500 .SPX down 2.6%.

US Treasury yields also declined as investors sought safe-haven assets, and crude oil, targeted for the first time by Chinese tariffs, fell sharply.

Trump’s tariff response was announced after markets closed on Friday, leaving potentially more damage for next week.

“Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer,” Trump said on Twitter. “As President, I can no longer allow this to happen!”

"Starting on October 1st, the $250 billion of goods and products from China, currently being taxed at 25%, will be taxed at 30%," Trump announced.