Tensions between the world’s two largest economies escalated further on Tuesday after China vowed to "fight to the end" against U.S. President Donald Trump's latest threat to impose an additional 50% in tariffs. The move risks deepening a global trade war that has already wiped trillions off global markets and rattled investors worldwide.

Last week, President Trump shook global financial markets with sweeping tariff announcements, rejecting calls for a pause despite a dramatic sell-off. Beijing swiftly retaliated, announcing 34% duties on U.S. goods, set to take effect Thursday—mirroring the U.S.'s aggressive stance in the escalating standoff.

Trump responded with a fresh warning: if China refuses to back down, he would push total tariffs on Chinese goods to a staggering 104%.

“I have great respect for China, but they can’t do this,” Trump said at the White House. “We’ve got one shot at this… It’s an honor to do it.”

China denounced the move as "blackmail", promising resolute countermeasures.

“If the U.S. insists on going its own way, China will fight it to the end,” a spokesperson for China’s Ministry of Commerce said. “This once again exposes the U.S.’s blackmailing nature.”

Despite the harsh rhetoric, Beijing reiterated its openness to dialogue, stressing that "there are no winners in a trade war."