China criticises Trump tariff blackmail as market turmoil settles

BEIJING/WASHINGTON - China said it would not bow to blackmail from the United States as a global trade war touched off by U.S. President Donald Trumps sweeping tariffs showed little sign of abating on Tuesday even as battered stock markets steadied.

The rebuke came after Trump said he would impose an additional 50% duty on U.S. imports from the worlds No.2 economy on Wednesday in response to Beijings decision to match the 34% reciprocal duties Trump initially unveiled last week.

The U.S. sides threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American sides blackmailing nature, Chinas commerce ministry said in a statement. If the U.S. insists on having its way, China will fight to the end.

The European Union proposed counter-tariffs of its own to Trumps tariff onslaught that swept up dozens of countries, sent financial markets into a tailspin and fuelled expectations that the global economy may be headed for recession.

Financial markets appeared to find a firmer footing after a gut-wrenching few days for investors which prompted some business leaders, including those close to Trump, to urge the president to reverse course.

Japans Nikkei index rose 6% on Tuesday, rebounding from a 1-1/2-year low hit in the previous session, after Trump and Japan Prime Minister Shigeru Ishiba agreed to open trade talks in a phone call late Monday.

Chinese blue-chips climbed 0.7%, recouping a fraction of the more than 7% slide on Monday. Hong Kongs Hang Seng Index jumped 2% after suffering the worst day since 1997. U.S. stock futures also pointed higher after a rollercoaster session in which it touched its lowest level in more than a year.

Trump said the tariffs - a minimum of 10% for all U.S. imports, with targeted rates of up to