President Donald Trump issued a new threat to Beijing on Monday, warning that the United States would impose even harsher tariffs unless China withdraws its latest retaliatory trade measures. In response, China accused the U.S. of “unilateral bullying” and promised to fight back.

The statement came just days after China announced a fresh round of tariffs targeting major American exports—including beef, corn, semiconductor components, and heavy industrial goods. Analysts estimate the retaliation could cost U.S. industries billions in losses within a month.

China’s Ministry of Commerce issued a formal response Tuesday, calling the U.S. escalation “completely groundless and a typical unilateral bullying practice.” A ministry spokesperson declared that China would “fight to the end” if provoked further, though no specific new countermeasures were announced.

Chinese state media condemned the U.S. for threatening global stability in pursuit of domestic political gain. Meanwhile, Trump has framed the conflict as part of a broader effort to end “foreign manipulation,” declaring last week’s “Liberation Day” as the symbolic end of U.S. dependence on foreign trade.

Global markets reacted sharply. The S&P 500 fell 1.3%, and the Dow Jones Industrial Average dropped more than 400 points. The agriculture and tech sectors took the brunt of investor sell-offs.

Despite pressure from allies, Trump has refused to scale back his tariff policies. The administration has also hinted at further actions, including blocking Chinese tech firms from U.S. markets.

As of Tuesday, there were no signs of resumed negotiations between Washington and Beijing. With both sides hardening their positions, the risk of a prolonged trade conflict—and wider economic fallout—continues to grow.