China warns US 'opening fire' on world with tariff threats

The United States is "opening fire" on the world with its threatened tariffs, the Chinese government warned on Thursday, saying Beijing would respond the instant US measures go into effect as the two locked horns in a bitter trade war.

The Trump administration's tariffs on $34 billion of Chinese imports are due to go into effect at 0401 GMT on Friday (12:01am eastern time on Friday), which is just after midday on Friday Beijing time.

China has said it will not "fire the first shot," but its customs agency said on Thursday in a short statement that Chinese tariffs on US goods would take effect immediately after Washington's tariffs on Chinese goods kicked in.

"The US' measures are essentially attacking the global supply and value chain. Simply put, the US is opening fire on the whole world, and also firing at itself," China commerce ministry spokesman Gao Feng said on Thursday.

"The US has provoked this trade war, we do not want to fight it, but in order to safeguard the interests of the country and the people, we have no choice but to fight," said Gao.

US President Donald Trump has threatened to escalate the trade conflict with tariffs on as much as a total of $450 billion in Chinese goods if Beijing retaliated, with the row roiling financial markets including stocks, currencies and global trade of commodities from soy beans to coal.

'China will not bow in the face of threats'

Washington's targets for higher border taxes focus on industrial components like PC parts, fuel pumps, construction equipment and autos, according to trade data firm Panjiva.

Gao noted that most of those exports are actually made by US and international companies in China.

"On the US's so-called list of $34 billion in taxable products, about $20 billion or 59 percent of them, are made by foreign invested enterprises, with American companies representing a significant portion," said Gao.

Noting reports that the US could add a tax on essentially every product shipped from China, Gao said "using the tariff stick to bully on trade runs against the trend of the times."

"China will not bow in the face of threats and blackmail," he added.

Investors worry

Investors fretted over the tariffs, and Asian and stocks edged down on Thursday as fears are growing over the consequences for global trade. 

Hong Kong shares were down 0.2 percent, while Shanghai lost 0.1 percent.

Tokyo slipped 0.2 per cent in morning trade, while Seoul and Taipei also posted losses.

Traders are also watching for key data from the US including payroll figures and Federal Reserve meeting minutes later this week.