China is set to retaliate against the 10 per cent additional tariff announced
by US President Donald Trump.

Its ministry of commerce reportedly said on Friday that it opposes the proposed tariffs on its goods imported into the US.

“If the US insists on having its way, China will counter with all necessary measures to defend its legitimate rights and interests,” Bloomberg said, quoting a spokesperson for the Chinese Ministry of Commerce.

The department had earlier said that it would take “corresponding” steps.

Separately, a CNBC report quoting the ministry of commerce said that it “firmly opposes’’ the planned levies.

“If the US insists on its own way, China will take all necessary countermeasures to defend its legitimate rights and interests. We urge the US side to not repeat its own mistakes, and to return as soon as possible to the right track of properly resolving conflicts through dialogue on equal footing,” a Ministry of Commerce spokesperson said in a statement, translated by CNBC.

For stock markets, the latest statement is another worry as it confirms the fears of a reprisal, which could hurt risky assets and lead to outflows into safe havens such as the dollar, gold and US treasuries.

The Hang Seng index on Friday crashed 3.28 per cent, while the Shanghai Composite Index was down 1.98 per cent. The offshore yuan was reportedly 0.1 per cent higher at 7.29 per dollar.