China said it would impose additional tariffs on a total of 5,078 US products that include agricultural products, crude oil, small aircraft and cars. Tariffs on some products would take effect on September 1 and others on December 15.

Containers are seen at the Yangshan Deep Water Port in Shanghai, China on August 6, 2019.
Containers are seen at the Yangshan Deep Water Port in Shanghai, China on August 6, 2019. (Reuters)

China on Friday announced tariff hikes on $75 billion of US products in retaliation for President Donald Trump's planned increase, deepening a trade war that threatens to tip the global economy into recession.

The tariffs of 10 percent and 5 percent take effect on two batches of goods on September 1 and December 15, the official Xinhua News Agency said. 

It gave no details of what goods would be affected but the timing matches Trump's planned duty hikes.

The spiraling conflict over China's trade surplus and technology ambitions has fueled concern among companies and investors that it might drag down already weakening global economic growth.

China's government appealed to Trump this week to compromise in order to break a deadlock in negotiations.

Trump previously announced plans to raise tariffs on an additional $300 billion of Chinese goods after talks broke down in May. They were due to take effect Sept. 1 but some were postponed to December 15.

US stocks open lower after China's announcement

Wall Street stocks opened lower Friday after China announced another round of tariffs on US goods, the latest escalation in the protracted trade war between the countries.

About 15 minutes into trading, the Dow Jones Industrial Average was at 26,149.07, down 0.4 percent.

The broad-based S&P 500 also slid 0.5 percent to 2,909.84, while the tech-rich Nasdaq Composite Index fell 0.6 percent to 7,944.74.

Among individual companies, cloud computing company Salesforce surged 5.6 percent as it lifted its full-year revenue forecast after a 22 percent jump in second-quarter sales to $4.0 billion.

Hasbro dropped 5.7 percent after announcing it will acquire Entertainment One for $4.0 billion in cash, a purchase that includes the "Peppa Pig" and "PJ Masks" brands.

Source: AP